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March 5, 2008 |
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KOREAN EXPRESS: Kumho-Asiana Inks KRW4.1-Tril. Deal to Buy Stake Kumho-Asiana Group, a South Korean transportation conglomerate, has signed a formal deal to buy a controlling stake in Korea Express Co. for KRW4.1 trillion, Yonhap News reports. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 21, 2008, Korea Express named Kumho-Asiana through affiliates Asiana Airlines Ltd. and Daewoo E & C, as the preferred bidder for a controlling stake in the company. The TCR-AP noted that 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. Kumho-Asiana, the TCRAP noted, won the bid for Korea Express beating Hanjin Group, STX Group and Hyundai Heavy Industries Co. For the transaction, Yonhap relates, Korea Express is selling 24 million new shares, equivalent to 60% of its enlarged capital. Daewoo Engineering & Construction Co., the group's construction unit, will buy 9.62 million new shares of Korea Express for KRW1.6 trillion, and Asiana will buy 8.17 million new shares for KRW1.4 trillion won, Yonhap explains. The remaining stake will be purchased by partners of Kumho- Asiana, Yonhap 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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