KDB seeks to auction off stake in Daewoo Engineering

By Nam Kwang-sik
SEOUL, June 30 (Yonhap) -- The Korea Development Bank (KDB) said Tuesday it will
seek to sell a controlling stake in Daewoo Engineering & Construction Co., a unit
of Kumho Asiana Group, through open bidding.
The state-run lender, which is the conglomerate's main creditor, holds a 50
percent stake plus one share in the nation's biggest builder. Kumho Asiana Group
said Sunday that it will sell the stake to help ease a cash crunch.
"Putting the stake up for sale on the market is the best way to sell it at the
right price," KDB Chairman Min Euoo-sung said. "The lender will determine in July
how to sell the stake in consultation with Kumho Asiana."
Kumho Asiana, South Korea's seventh-largest conglomerate, has been plagued by a
cash shortage since it purchased Daewoo Engineering & Construction for 6.43
trillion won (US$5 billion) in 2006 and No. 1 logistics company Korea Express Co.
for 4.1 trillion won in early 2008.
In July 2008, the group said it plans to raise about 4.57 trillion won by selling
properties and securities of its affiliates to dispel investors' worries over its
financial health.
ksnam@yna.co.kr
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