KDB, Hanwha sign Daewoo deal

Last Friday Korea Development Bank (KDB) signed a preliminary deal with Hanwha Group on the sale of a controlling stake in Daewoo Shipbuilding & Marine Engineering Co. (DSME). Starting next week, Hanwha will begin a due diligence on DSME for three or four weeks, the bank said. The deal came after Hanwha was named in late October as a preferred bidder for the 50.4% stake in the world’s third-largest shipbuilder. KDB, the shipyard’s biggest shareholder, didn’t disclose the sale price, but industry sources estimate that the group offered over 6.5 trillion won ($4.71 billion) for the stake.

A final contract for the controlling stake in DSME will be signed before the end of the year after Hanwha completes due diligence, it said.