Hanwha eyes 49.3% stake in Daewoo Shipbuilding

Hanwha Group signed a conditional memorandum of understanding to acquire a 49.3 percent stake and managerial control of Daewoo Shipbuilding & Marine Engineering Co. (DSME)

The acquisition of DSME, the world’s fourth-largest shipbuilder, boosts Hanwha’s key defense and green energy sectors.

Hanwha Aerospace Co., Hanwha Systems Co., and four other Hanwha affiliates will take part in the 2 trillion won rights offering to acquire the DSME shares.

Hanwha is South Korea’s seventh-largest conglomerate.

The Korea Development Bank (KDB), DSME’s main creditor, will hold a 28.2 percent stake in the shipyard, down from the current 55.7 percent.

Past sales attempts by KDB fell through, including Hanwha’s first bid in 2008 to buy DSME for 6.32 trillion won in the wake of the global financial crisis.