Asiana and bank to sell 37.6% 0f Korea Express

Korea Development Bank and Asiana Airlines will sell a combined 37.6 percent stake in logistics company Korea Express , and will aim to select a preferred bidder by May, reported Dow Jones Newswires.


A KDB official, who declined to be identified, said the managers for the Korea Express sale have sent a teaser letter to 10 potential buyers, including South Korean conglomerates CJ Group, GS Group, Lotte Group, Samsung Group and steelmaker Posco.


How well the Korea Express stake sale fares may provide an early indicator on how mergers and acquisitions in South Korea will progress this year, as it is the first major asset to be put on the block so far.


Analysts expect strong interest for the firm, which is South Korea's largest logistics firm by revenue, with some of them estimating that the stake could be sold for more than US$1.79 billion.


The sale also marks the latest attempt by troubled South Korean conglomerate Kumho Asiana Group to raise cash amid rigorous restructuring. Asiana, an affiliate of Kumho Asiana, owns 23.95 percent of Korea Express, while KDB, Kumho's lead creditor, controls another 23.95 percent of the logistics firm through Daewoo Engineering & Construction Co.


Asiana and KDB have set a March 4 deadline for letters of intent for the Korea Express stake, based on which they will short list bidders. The preferred bidder for the shares will be selected in May, the KDB official said.


While it is not clear how many bidders will emerge, CJ, Lotte and Posco have already said they are considering a bid. A GS Group official said, however, that the firm doesn't plan to bid for Korea Express. Samsung Group couldn't be immediately reached for comment.
(Source:http://www.cargonewsasia.com)