SPP takeover in doubt

SPP takeover in doubt

The planned takeover of part of SPP Shipbuilding by fellow Korean firm Samla Midas Group (SM Group) has run into difficulty.

SM Group had earlier been accepted as the sole bidder for one of three of SPP’s yards, keen to take it on and rebrand it as SM Shipbuilding. However, local media now report the construction conglomerate has since tried to renegotiate lower the price and the terms for the takeover, with creditors refusing to budge. SM also owns Korea Line Corporation.

SM had originally said it was willing to pay up to $410m to take over SPP’s Sacheon shipyard.

SPP has been in debt workout for the past six years.

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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