Kumho Asiana to sell Daewoo E&C stake
Kumho Asiana Group(KAG) decided to sell its controlling stake of Daewoo E&C in order to settle its liquidity issues regarding of Put-back option.
KAG said, "We decided to sell Daewoo E&C in a way to cast off concerns regarding of Put-back option issues."
Selling size depends on potential buyers’ preference and market condition 1) shares of financial investors 39% + ruling right 2) 50% + 1 stock 3) 72% (financial investors 39% + KAG 33%)
At first, KAG presented to find out the 3rd financial investors to resolve put-back option issues. It has negotiated with domestic and overseas investors since last March. Practical and concrete debate led Memorandum of Understanding last May. Also, it has considered a lot of options including setting up a PEF with financial investors and also investing in exchangeable bonds based on the stocks of Daewoo E&C. As these options will increase liabilities of KAG and deteriorate its financial health, KAG decided to sell the shares of Daewoo E&C.
We will talk to main creditor banks and advisors to decide on selling size of Daewoo E&C which will minimize our loss and relieve potential buyer’s allotment.", KAG said.
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