A local smaller constructor Hoban Construction solely took part in the acquisition of Daewoo Engineering & Construction Co (Daewoo E&C).
According to an official of the Korea Development Bank on January 19, only Hoban Construction submitted a proposal in the main bid for the sale of a 50.75% stake in Daewoo E&C held by the bank.
No bid proposal was handed in by Elien Holdings, a China-based investor, and the Pacific Private Alliance Group, a Chinese private equity fund.
It is said that Hoban Construction made a proposal to purchase 40% of the 50.75% stake first and buy the rest of the stake in two to three years after securing a put option. This means even if the Daewoo E&C share price drops, Hoban Construction will guarantee a certain amount for the remaining 10.75%.
In respect to this, the Korea Development Bank is refraining from making an official statement. However, the Korea Development Bank said that the bank would select the preferred bidder by checking not only the bid price as well as the sustainability of the company and the reality of financing.