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SM-led Consortium Selected as Preferred Bidder for STX
New Owner of STX
SM-led Consortium Selected as Preferred Bidder for STX
  • By Jung Suk-yee
  • March 15, 2017, 03:15
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SM Group was selected as the preferred bidder for STX Corp on March 14.
SM Group was selected as the preferred bidder for STX Corp on March 14.

 

A SM Group-led consortium was selected as the preferred bidder for the cash-strapped STX Corp on March 14.

Earlier last week, the SM Group and three other companies jointly made an offer to buy STX Corp.

Since mid-February, the selling-off of STX has been suspended because of the erosion of its capital base. The company faces the risk of being delisted when it fails to come up with measures to bolster its capital base. SM Group reportedly plans to pour 130 billion won into STX.

The state-run Korea Development Bank owns 39.59 percent of STX stakes and Nonghyup holds 10.07 percent.

Late last year, SM Group, which operates South Korea's No. 2 bulk carrier Korea Line Corp., acquired Hanjin Shipping’s US-Asia route and other assets for 37 billion won (US$32 million).