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 worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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