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KDB to receive preliminary bids by Nov. 13 to sell Daewoo Engineering

2017/10/13 11:07

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SEOUL, Oct. 13 (Yonhap) -- The state-run Korea Development Bank (KDB) said Friday it will receive preliminary bids by Nov. 13 to sell its controlling stake in Daewoo Engineering & Construction Co.

The 50.75-percent stake in Daewoo Engineering is valued at some 1.5 trillion won (US$1.32 billion) and is held by a private equity fund controlled by KDB.

KDB plans to pick a preferred bidder early next year.

The lender, a key creditor of Kumho Asiana Group, purchased the stake in Daewoo Engineering 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 in 2006.