The sale of Daewoo Shipbuilding & Marine Engineering’s (DSME) headquarters building in downtown Seoul to its preferred bidder has been cancelled due to “drawn out” negotiations and procedures, according to Yonhap reports.
The struggling South Korean shipyard group picked a local property developer in May as the preferred bidder for the building but negotiations have reportedly been terminated.
Discussions have begun with other potential investors to complete the sale, according to Yonhap.
The deal, which was valued previously at some KRW180bn ($163m), is part of DSME’s self-rescue package, along with the sale of its other non-core assets.
The KRW1.85tr ($1.68bn) self-rehabilitation plan was drawn up last year in return for KRW4tr ($3.63bn) in financial aid. DSME has raised KRW440bn ($399.6m) by selling assets.
Earlier this month, DSME announced plans to spin off its naval shipbuilding business within the next six months. The spun-off entity will eventually be listed publically.