Hyundai Heavy Industries, the world's largest shipyard, and three other South Korean firms submitted bids Wednesday for Daewoo Shipbuilding and Marine Engineering. State-run Korea Development Bank (KDB), which is arranging the sale, said steelmaker POSCO, the GS Group and Hanwha Group also submitted letters of intent to buy the world's third-largest shipbuilder.
KDB and a government asset-management unit are selling a 50.4 percent stake in Daewoo Shipbuilding, a deal which Yonhap news agency said will fetch as much as seven trillion won (6.45 billion dollars). KDB will pick a preferred bidder in October. Daewoo Shipbuilding was taken over by creditors in 2000 after its parent Daewoo Group collapsed under a debt mountain totalling 82 billion dollars - one of the world's largest corporate failures.
But the shipbuilding unit has a lucrative energy-related business and strong cash flows. So far this year it has secured orders worth 10.9 billion dollars to build ships and offshore facilities. POSCO hopes the deal will help it secure stable steel demand and diversify its business, while Hyundai Heavy wants to reduce competition in the sector.