Keeping Watch

 

Korea Development Bank (KDB) is paying keen attention to the Kumho Asiana Group regarding the disposal of Kumho Industrial. The bank is thinking that the group may affect the process of the sale. Also, KDB told private equity funds, Hoban Construction, and the like that submitted their letters of intention not to cooperate or form a consortium with the owners of Kumho Industrial. “We will give the Kumho Asiana Group a strict warning in the near future not to interfere with the process,” the bank said on Mar. 4.

The current situation is because of the scene that the Shinsegae Group recently made concerning its participation in the M&A deal. Industry insiders are pointing out that Kumho Industrial Chairman Park Sam-koo is trying to deter potential bidders from being interested in the company by meeting figures in the business community. “The Shinsegae Group submitted its LOI, but stepped back after chairman Park Sam-koo and Lotte Group chairman Shin Dong-bin met with each other,” one of them explained. 

Investors have doubts, and KDB is also aware of the atmosphere. Both of them know that the deal may lead to unfair competition. This is why KDB told the bidders not to work with the owners.

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