Dongbu-led consortium picked as preferred bidder for Hanjin Heavy

SEOUL, Dec. 22 (Yonhap) -- A consortium led by construction company Dongbu Corp. was picked Tuesday as the preferred bidder for the controlling stake of Hanjin Heavy Industries & Construction Co., the troubled shipbuilder said.

A group of Hanjin's creditors, led by the Korea Development Bank, reached the decision during a meeting earlier in the day, Hanjin said in a regulatory filing.

The Dongbu consortium beat two competitors, including a group led by SM Line Corp, to acquire a 83.45 percent stake in Hanjin Heavy -- 63.44 percent owned by the seven domestic financial institutions and 20.01 percent by three Filipino financial firms.

Hanjin Heavy suffered from capital erosion last year due to the troubles of its Subic shipyard in the Philippines.

Following the announcement, the Dongbu-led consortium issued a press release and said it expects its acquisition of Hanjin will create synergy in many business areas.

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

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