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December 13, 2007 |
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KOREA EXPRESS: Attracts 10 Potential Bidders for Stake Sale Korea Express Co. Ltd. has attracted 10 potential bidders in a sale that analysts say could fetch up to US$2.2 billion, Reuters reports. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 28, 2007, Korea Express, with a market value of around KRW2.4 trillion, invite potential buyers to submit preliminary bids for the company. Korea Express, which has been under court receivership since November 2000, plans to find a new owner by selling new shares equal to 50% of enlarged capital plus one share. According to the TCR-AP, the company will sell 24 million new shares, equivalent to 60% of its expanded outstanding shares, instead of its original plan to sell 50% plus one share. Reuters relates that a Seoul District Court official said "A total of 10 bidders have put in letters of intent, and out of them, four are in the form of consortia." The creditors of Korea Express will allow the preliminary bidders to conduct due diligence from December 17 to January 4 before submitting a formal bid on January 11, the official added. The bidders reportedly include transport groups like Kumho Asiana, Hanjin Group, the parent of Korean Air, Hyundai Heavy Industries and STX Corp, as well as retail giant CJ Corp. Korea Express picked in October a consortium consisting of Merrill Lynch and Samil PricewaterhouseCoopers to manage the sale, Reuters notes. Kumho-Asiana Group & Hanjin Group Submits Bid Kumho-Asiana Group and Hanjin Group, South Korea's two family- run industrial conglomerates, have submitted preliminary bids to buy a controlling stake in Korea Express, Asia Pulse reports. Officials at the two business groups, speaking on the condition of anonymity, the report relates, confirmed that they submitted their letters of intent to buy 24 million new shares of the company. An official at Hanjin Group said with a successful acquisition of Korea Express, we plan to leap into becoming a successful global logistics company, Asia Pulse adds. About Korea Express Co. Headquartered in Seoul, Korea Express Co., Ltd. -- http://www.korex.co.kr/ -- provides land and marine transportation, and logistics services. The company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. Korea Express transports a variety of products, ranging from consumer goods to machinery and turbines. Korea Express also operates Internet home shopping business. Korea Express Bank has been under court receivership since June 2001 after it could not service a KRW1.5-trillion debt, including KRW919 billion owed by then-parent Dong-Ah Construction Industrial Co. Korea Express President Lee Kook- Dong will decide with a Seoul court about when to sell the company, which has a market value of US$601 million. In the company's Web site, Mr. Lee said that Korea Express will strive to end court receivership and improve its liquidity, maximize sales profit through strengthening of cooperation between management and labor, and seek continuous development. Korea Investors Service gave the company a BB rating. |
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