KDB refutes Daewoo Shipbuilding ‘low price sale’ controversy… “Consider your current financial position”

(Seoul = Yonhap Infomax) Reporter Park Jun-hyung = When the controversy surrounding the sale at a low price in relation to the Hanwha Group’s decision to acquire Daewoo Shipbuilding & Marine Engineering for 2 trillion has been won, the Korea Development Bank said, “ The financial position at each point in time needs to be considered in order to determine the appropriate corporate value.” He answered.

The Korea Development Bank issued a statement on the 27th and said, “The current financial situation of Daewoo Shipbuilding has deteriorated significantly.”

Some critics said the sale price was too low compared to when they pursued M&As with Hanwha Group in 2008 and Hyundai Heavy Industries Group in 2019, and they actively explained this.

In 2008, Daewoo Shipbuilding’s debt ratio and market capitalization was 368% and won 9.8 trillion, respectively, and in 2018, it won 215% and 3.6 trillion, respectively.

At the end of the first half of this year, Daewoo Shipbuilding’s debt-to-equity ratio increased to 713%, and its market cap increased to 2.3 trillion.

The KDB said, “For the basic normalization of Daewoo Shipbuilding, ‘finding a private owner’ is essential. I hope to be there,” he said.

In addition, given the characteristics of the transaction, he argued that the ‘low price argument’ was inappropriate.

On the 26th, Daewoo Shipbuilding and Hanwha Group signed a conditional investment agreement (MOU) including a plan for a capital increase of 2 trillion won.

The KDB said, “This transaction is not a sale of stocks currently held by Hanwha Group, but an expansion of 2 trillion won in new capital for Daewoo Shipbuilding.” If it is sold, we can expect to recover as much money as possible.”

He added, “As M&A is conducted in the stalking horse method, if there is an investor who offers better conditions than the Hanwha Group in the open competitive bidding process in the future, we will conclude a new contract with that investor .”

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This article was submitted at 18:05 on the Infomax financial information terminal.

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