Daewoo Shipbuilding & Marine Engineering (DSME), which managed to tide over a crisis thanks to financial institutions, is in a hurry to dispose of its assets. Still, the disposal of its overseas subsidiaries is unlikely to be easy, because foreign governments have shares in them and they are engaged in a series of ongoing projects.
The DSME announced on Nov. 13 that it completed the sale of its FLC shares at 45.5 billion won (US$38.8 million). Earlier, it sold all its shares in Fine Besteel and Daewoo Information Systems, along with 54 percent of its shares in Doosan Engine. Under the circumstances, the company is expected to procure approximately 300 billion won in cash within this year, about half of the target of 750 billion won (US$6.41 million). The rest is to be prepared by selling its affiliated companies abroad.
The DSME’s plan is to sell every overseas subsidiary except for those required for it to maintain its competitiveness in the shipbuilding and maritime industry. Still, the disposal procedure is unlikely to start before the end of this year, since those firms are engaged in a number of projects as of now.
For example, Daewoo Mangalia Heavy Industries in Rumania is slated to be sold or liquidated after its ship delivery is completed. When it comes to DeWind, a wind power firm, only the key parts are to be absorbed by the company while the rest is liquidated. In the meantime, the DSME submitted a self-help plan worth 1.85 trillion won (US$1.58 billion) to its creditors late last month.