Instead of Cash

Daewoo Shipbuilding & Marine Engineering (DSME) will receive some of the payments for drill ships ordered by Sonangol of Angola in stocks.
Daewoo Shipbuilding & Marine Engineering (DSME) will receive some of the payments for drill ships ordered by Sonangol of Angola in stocks.

 

Daewoo Shipbuilding & Marine Engineering Co. (DSME) will receive some of the payments for drill ships ordered by Sonangol, a government-run petroleum company of Angola, in stocks.

DSME officially announced that it held the board meeting on September 21 and decided to acquire some shares of Sonangol’s special purpose venture (SPV) that operates drill ships.

The company was planning to deliver two drill ships to Sonangol at the end of June and July, but delayed the deliveries as Sonangol failed to raise US$1 billion (1.12 trillion won) the company should receive from Sonagol due to its financial difficulties.

Accordingly, DSME, which also suffered from financial difficulties due to unpaid bills from Sonangol, decided to collect US$800 million (892.8 billion won) in cash of US$ 1 billion (1.12 trillion won) and the remaining amount in stocks of the SPV.

DSME is planning to invest 195.9 billion won (US$175.54 million) out of 1.12 trillion won (US$1 billion) in stocks of the SPV. However, the figure can increase according to corporation management. 

Sonangol is now in talks with foreign financial companies to raise US$8 million (892.8 billion won) but discussions have stalled.

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