Business · Companies · 22 hrs ago
KDB Life sale talks stall as K Shipbuilding prepares new sale attempt
South Korea’s mergers and acquisitions market has several long-running sales that may move forward this month.
KDB Life’s preferred buyer, Korea Investment Holdings, has been negotiating with state-run Korea Development Bank over how much capital should be added before the sale.
The bank is said to favor about 500 billion won, while the buyer has sought around 1 trillion won.
Separately, K Shipbuilding is preparing to sign a memorandum of understanding with Hanwha?
No: with Korea Carbon and Taekwang Industrial as conditional preferred buyers.
A competitive bidding process will follow, and another bidder could still offer more; an earlier sale attempt fell through in June.
Mirae Asset Management is also considering selling State Tower Namsan, an office building in central Seoul, and industry watchers say it could be valued at 1 trillion won.
The timing and outcome of these sale processes will depend on negotiations, regulatory steps and competing bids.
KDB Life’s sale talks remain stalled over the size of a proposed capital increase, two months after a preferred bidder was selected.
Korea Investment Holdings was named preferred bidder on August 13 and is negotiating with Korea Development Bank over the amount of advance capital.
The bank is said to favor about 500 billion won in capital, while bidders have sought about 1 trillion won.
K Shipbuilding is expected to sign a memorandum of understanding next week with conditional bidders Hanwha?
The K Shipbuilding sale is being relaunched through a stalking-horse process after an earlier attempt collapsed in June.
- Who
- Korea Investment Holdings and Korea Development Bank are negotiating over KDB Life’s sale.
- What
- Talks have not advanced to a share purchase agreement, with the size of an advance capital increase a key issue.
- When
- As of October 11, talks had continued for two months after the preferred bidder was selected on August 13.
- Where
- Not stated.
- Why
- The parties disagree over the amount of advance capital needed for the sale.
Korea Investment Holdings
Korea Development Bank
Advance capital
Korea Investment Holdings
It has sought about 1 trillion won in advance capital.
Korea Development Bank
It has favored about 500 billion won.
No direct quotes in the coverage so far.
An earlier attempt to sell K Shipbuilding fell through.
Korea Investment Holdings was selected as preferred bidder for KDB Life.
The article reported that KDB Life talks had yet to reach a share purchase agreement.
K Shipbuilding is expected to sign a memorandum of understanding with conditional bidders.
- KDB Life preferred bidder
- Korea Investment Holdings
- Selection date
- August 13
- Korea Development Bank’s proposed capital
- About 500 billion won
- Bidders’ requested capital
- About 1 trillion won
- K Shipbuilding sale process
- Stalking-horse public tender
Sources
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