Monday November 23, 3:54 PM
Two foreign funds compete to buy S.Korea builder
South Korean airline group Kumho Asiana chose two foreign funds Monday to bid to buy a more than 50 percent stake in a major local builder, in an auction estimated at 2.85 billion dollars, officials said.
The firm selected Javez Partners and TR America as preferred bidders for Daewoo Engineering and Construction.
Jabez Partners is a sovereign wealth fund based in Abu Dhabi, while TR America is leading a consortium of US investors.
Kumho Asiana, the parent of the country's second flag carrier Asiana Airlines, declined to give details saying it would try to sign a deal next month with one of the two funds.
The bidding prices ranged from 20,000 won (17.3 dollars) to 24,000 won per share, which places the value of the deal at an estimated 3.3 trillion won (2.85 billion dollars), Yonhap news agency said.
Kumho Asiana has been plagued by cash shortages since it bought a 72.11 percent stake in Daewoo Engineering in 2006.
Daewoo Engineering, a former affiliate of the collapsed Daewoo Group, was among the country's top builders that all went bankrupt or were bailed out in the wake of the 1997-98 East Asian financial crisis.
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