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3 consortia submit final bids for Hanjin Heavy

All News 17:48 December 14, 2020

SEOUL, Dec. 14 (Yonhap) -- Three consortia have submitted bids for financially troubled Hanjin Heavy Industries & Construction Co., its main creditor said Monday.

The three consortia include the one led by construction firm Dongbu Corp and another one led by shipper SM Line Corp., according to the state-run Korea Development Bank (KDB).

The 83.45 percent stake in Hanjin Heavy up for sale is owned by seven local financial institutions, including KDB, and three Filipino financial institutions that include Rizal Commercial Banking Corp. via a debt-for-equity swap.

KDB picked local accounting firm Samil PricewaterhouseCoopers and KDB's mergers and acquisitions consulting team as co-lead managers for the stake sale.

The preliminary bid to sell the controlling stake in the shipbuilder was finalized on Oct. 26.

This file photo shows a shipyard of Hanjin Heavy Industries Co. in Busan, about 453 kilometers southeast of Seoul. (Yonhap)

Unionized workers at Hanjin Heavy have called for job security and a ban on rezoning the shipyard for other uses, such as an apartment complex.

Civic groups in Busan, where the shipyard of Hanjin Heavy is located, have supported the workers' calls.

The stake sale is expected to be concluded early next year after gaining approval from authorities, including the country's arms procurement agency Defense Acquisition Program Administration (DAPA), as the shipbuilder has been fully dedicated to building battleships.


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