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Global Sae-A signs share purchase agreement to acquire SsangYong E&C

Published: 17 Oct. 2022, 13:11 Updated: 17 Oct. 2022, 19:33

SsangYong Engineering & Construction's headquarters in Songpa District, southern Seoul. [JOONGANG ILBO]

Global Sae-A announced Monday it signed a share purchase agreement to acquire SsangYong Engineering & Construction.

The company said it signed the agreement on Oct. 14 and will be acquiring 90 percent of SsangYong Engineering & Construction. It will be acquiring new shares issued from the construction company and also shares from the Investment Corporation of Dubai (ICD).

The Dubai fund currently has 99.95 percent of the company, becoming the owner of debt-laden SsangYong Engineering & Construction in 2015 after the company went under court receivership in 2014.

ICD will still own 10 percent of the construction company after the acquisition.

The total acquisition price was undisclosed.

To finalize the acquisition, Global Sae-A has to be given approval from the Fair Trade Commission.

Global Sae-A is a holdings company that owns various subsidiaries in apparel and textile making. The company also wholly owns Sae-A STX Entech, which specializes in the construction of energy power plants.

Acquiring SsangYong Engineering & Construction is expected to help the company and its subsidiaries achieve its goal of logging combined revenue of 10 trillion won ($7 billion) in 2025. It aims to focus on construction as one of its main growth drivers. It logged combined revenue of 4.2 trillion won in 2021.

“The acquisition will enhance our competitiveness and help us to achieve our goal to log 10-trillion-won in revenue and one trillion-won in operating profit in 2025,” said Kim Ki-myung, CEO of Global Sae-A. “We will do our best to successfully go through the remaining acquisition process.”

BY LEE TAE-HEE [[email protected]]