April 26, 2024

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[THE INVESTOR] State-run Korea Development Bank said on Jan. 31 it has chosen Hoban Construction. as a preferred bidder to sell a controlling stake in Daewoo Engineering & Construction.

The decision comes after Hoban Construction, a midsized builder, made a solo bid for the stake earlier this month.

KDB plans to sell a 50.75 percent stake in Daewoo E&C.

Under a deal, Hoban Construction will buy a 40 percent stake in Daewoo E&C and acquire the remaining 10.75 percent stake two years later.

As of 2016, Hoban Construction reported sales of 1.2 trillion won (US$1.12 billion), compared with Daewoo E&C’s 10.9 trillion won.

KDB, a key creditor of Kumho Asiana Group, purchased the stake in Daewoo Engineering in 2010 to help the debt-ridden conglomerate restructure its finances.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)