Prime DSME bidder to be decided in October

Creditors of Daewoo Shipbuilding & Marine Engineering (DSME) are expected to select a preferred bidder for the shipbuilder in October. According to industry sources, the state-run Korea Development Bank (KDB) started a due diligence on the shipbuilder last week as its labour union ended a month-long protest over the sale of their companies.

KDB and Korea Asset Management Corp. have been seeking to sell their 50.4 % stake in the shipbuilder, but that process has been stalled because of union protests which have blocked bank officials’ entry into their offices since early June.

Due diligence will take three to four weeks after which creditors will choose a preferred bidder in October. KDB is aiming to complete the sale by the year end. Korea Development Bank is selling the shipyard as it prepares for its own privatization since the government plans to start reducing its 100 % stake in the bank next year and to fully privatize it by 2012.

Some South Korean conglomerates such as Doosan Group, GS Group and Hanwha Group, have said they are interested in taking over the shipyard. POSCO, the world’s fourth-largest steelmaker, is also seeking to buy the shipbuilder.