SK denies DSME takeover talk

SK denies DSME takeover talk

SK Group, South Korea’s third largest conglomerate, today denied it was taking over troubled yard Daewoo Shipbuilding & Marine Engineering (DSME).

“Rumours that SK Group has sought to acquire Daewoo Shipbuilding & Marine Engineering Co are groundless,” SK Holdings Co said in a filing to the Korea Exchange.

Shares of DSME leapt as much as 20% this morning on the back of local reports linking SK with taking over Korea Development Bank’s (KDB) stake in the shipbuilder.

KDB also dismissed the SK links. SK is a diverse conglomerate, with businesses that include energy and shipping.

DSME has had to be handed billions of dollars of extra credit in recent weeks to fend off financial disaster. It has racked up huge losses this year from offshore projects that have not worked out as well as alleged accounting malpractice.

KDB has said it is keen to offload its controlling stake in DSME as soon as possible.

 

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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