Creditors decide to sell Korea Express early next year

Creditors of Korea Express came to a conclusion to sell their stakes in the company from early next year, reported Maeil Business Newspaper.

The creditors decided to mull over what would be the best way for the sell-off, an open bidding or limited competitive bidding.

According to the financial industry, Korea Development Bank (KDB), one of the creditors will make an official plan for the sale of Korea Express and select an institution to oversee the sell-off process over this weekend and start the process from early next year.

KDB has, in fact, risen as a new owner of the company as it recently acquired Daewoo E&C, which holds 23.95 percent in Korea Express.

Asiana Airline is the largest shareholder of Korea Express within Kumho Asiana Group, also holding 23.95 percent, but is in talks with the creditors over restructuring the shareholding structure.

"POSCO and some other conglomerates are showing interests in acquiring Korea Express. It is the right time to sell the company for a good price. The final decision on the sale will be largely based on the creditors' agreement," a high-ranking official from the creditors said. "The first thing to do is reach an agreement within the creditor group, since there are quite many stakeholders involved in the sale."

"However, Korea Express is not an asset acquired through workouts (firm improvement activities), so it is more difficult for the creditors to direct sales," said another official. "Most likely, the company will take command of the sales and set the appropriate price," he predicted.

The premium price of Korea Express is forecast to be in the US$1.7 billion range.

Experts believe the management rights package deal will add an additional 40 to 50 percent premium on the market price.

Conglomerate groups such as POSCO, Samsung, and Lotte, are known to be interested in the acquisition.
(Source:www.cargonewsasia.com)