Korea Development Bank ready to sell Daewoo stake

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Korea Development Bank ready to sell Daewoo stake

The state-run Korea Development Bank said Friday that it would receive preliminary bids by Nov. 13 to sell its controlling stake in Daewoo Engineering and Construction.

The 50.75 percent stake in Daewoo is valued at some 1.5 trillion won ($1.32 billion) and is held by a private equity fund controlled by Korea Development Bank.

The bank plans to pick a preferred bidder early next year.

The bank, a key creditor of Kumho Asiana Group, purchased the stake in Daewoo in 2010 to help the debt-ridden parent group restructure its finances.

Kumho Asiana’s two subsidiaries - Kumho Tire and Kumho Industrial - have been under a debt restructuring program since early 2010 due to a severe cash crunch sparked by the group’s purchase of Daewoo Engineering and Construction in 2006.

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