The privatization of Daewoo Shipbuilding & Marine Engineering will be confirmed by its largest shareholder, the Korea Development Bank, during a board of directors meeting on Friday afternoon.
After the agenda is passed, the KDB will sign a deal with Hyundai Heavy Industries to hand over its DSME stocks on the same day. The signing ceremony will be attended by KDB Chairman and CEO Lee Dong-gull and Hyundai Heavy Industries CEO Kwon Oh-gap.
Under the deal, HHI Holdings will become the largest shareholder with a 28 percent stake, and the KDB will be the second-largest shareholder with an 18 percent stake.
The KDB will receive redeemable convertible preference shares worth 1.25 trillion won ($1.1 billion) and 6 million shares of common stock worth 850 billion won in return for 2.1 trillion won of investment in kind on DSME.
On the same day, around 500 members from the Korean Metal Workers’ Union staged a protest against the tie-up, at DSME’s shipbuilding plants in Okpo, a neighborhood in the city of Geoje in South Gyeongsang Province.
By Shin Ji-hye (email@example.com)
Source : koreaherald