STX to acquire Daehan

STX said it submitted a proposal for participating in the main bid for acquisition of Daehan Shipbuilding proceeded by creditors including Korea Industrial Bank (KIB) on 16 March. In the main bid, two or three other shipping companies have participated, including STX and a shipping company from the United Arab Emirates (UAE).

Creditors plan to have individual negotiations on debt adjustment and conversion of investment with bid participants for about one month. “Acquiring Daehan will pose a relatively less financial burden for us as the creditors will make a debt-equity swap of Daehan Shipbuilding’s debt. The size of docks in Daehan’s shipyard is much larger than ours. I am sure it will create a great synergy when we take over the Daehan shipbuilding,” a source from STX said.