Daewoo Shipbuilding & Marine Engineering (DSME) has said it plans to spin off its naval shipbuilding business within the next six months.
The South Korean group said in a statement it is conducting a feasibility study for the divestment, which should get underway in 2017.
If the plans go ahead, DSME’s naval shipbuilding activities would be split off into a new subsidiary, which would be listed through an initial public offering (IPO) on the Korean Exchange.
There had previously been media speculation that Korea’s Hanwha Group was considering acquiring DSME’s defense business, which builds battle ships and submarines, but the company has flatly denied this.
“We have never considered the acquisition,” Hanwha said in an exchange filing.
Meanwhile, DSME will reportedly collect $800m in cash of $1bn outstanding in delayed payments from Angola’s Sonagol, which ordered two drillships from the shipyard that were originally due for delivery in 2015. The remaining $200m will collected in stocks, Business Korea reports.