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.