[THE INVESTOR] State-run Korea Development Bank will put Daewoo Engineering & Construction up for sale again after restructuring the ailing builder, a bank official said on Feb. 19.
The fate of Daewoo E&C was thrown into uncertainty earlier this month after a smaller builder, Hoban Construction Co., dropped its bid to buy the bigger rival due to losses at its overseas businesses.
Daewoo E&C will be “put up for sale at an appropriate time, while making efforts to increase its corporate value,” a KDB official said.
KDB’s fund holds a 50.75 percent stake in Daewoo E&C, which will expire in July 2019.
Analysts believe that KDB will put Daewoo E&C up for sale before the fund expires.
The state lender, a key creditor of Kumho Asiana Group, purchased the stake in Daewoo E&C in 2010 to help the debt-ridden conglomerate restructure its finances.
By Song Seung-hyun and newswires (
ssh@heraldcorp.com)