Hyundai Heavy set to sign official deal with KDB for DSME takeover

Hyundai Heavy set to sign official deal with KDB for DSME takeover

South Korean shipbuilding major Hyundai Heavy Industries (HHI) is set to sign an official contract with Korea Development Bank (KDB) today for the takeover ofDaewoo Shipbuilding & Marine Engineering (DSME), Business Korea has reported.

In January, HHI signed a conditional agreement with KDB to acquire the controlling stake in DSME.

HHI will create a holding company to control its shipbuilding business after the takeover. HHI will be the largest shareholder of the holding company, controlling a 26% stake while KDB will be granted a 18% stake in the company, becoming the second largest shareholder.

Following the takeover, the major shareholders of DSME including HHI, KDB, National Pension Service (NPS) and KCC will jointly replenish KRW1.5 trillion ($1.3bn) of capital into the company.

HHI’s takeover of DSME has been facing strong oppositions from unions of both yards as they worry that the merger would lead to massive layoffs. Both unions have passed plans to go on a strike to protest against the merger.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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