The Investment Corporation of Dubai (ICD), the Samra Midas Group, and Steel & Resources participated in the bidding for the sale of Ssangyong Engineering & Construction. Under the circumstances, the builder is expected to be able to change hands after seven failed attempts since 2007.
A Singaporean private equity fund had shown up in the preliminary bidding, but did not show up on Dec. 17. It is said that the tender turned out to be successful because the builder addressed most of its contingent project financing liabilities in court receivership, which lowered the contract price to a large extent.
The ICD is one of the two largest sovereign funds of the UAE. It has made huge investments in construction companies and developers around the world, and thus its acquisition of Ssangyong E&C is expected to be a win-win deal.
The Samra Midas Group took part in the bidding in order to expand its overseas business. It has taken over small construction firms such as Samra Construction and Ubang Construction.
Steel & Resources, a KOSDAQ-listed company engaged in metal scrap treatment, resources recycling, and the like, has shown interest in the construction field.
The acquisition price is estimated at around 300 billion won (US$272 million). Woori Investment & Securities and Yeil Accounting Corporation, the lead managers, are planning to select a preferred bidder before the end of this month and sign a formal contract in February next year.