Three vie for $1.5b Korea Express stake

At least three suitors including steelmaker POSCO have joined bidding for a controlling stake in Korea Express, reported Reuters.


The deal is believed to be worth about US$1.5 billion.
Sale managers of South Korea's top logistics company invited 10 investors last month to sell a 37.6 percent stake held by liquidity-crunched Asiana Airlines and Daewoo Engineering & Construction.


Strong interest from cash-rich Korean business conglomerates boosted shares of Korea Express as much as 12.4 percent today. The company ended trading up 5.7 percent.


Other bidders in the first stage of the auction include South Korea's top retailer Lotte Group and food-to-entertainment CJ Group, the companies said. Shinsegae said it had decided not to participate.


Korea Express shareholders plan to pick a preferred bidder by May 13 and sign a final deal on June 30, said a spokesperson for Korea Development Bank, which is arranging the deal with Nomura Holding.


The stake was worth $848 million at the current market value, but bidders may have to offer nearly double that to win the auction, analysts said.
(Source:http://www.cargonewsasia.com)