Tong Yang Moolsan, Korea’s third-largest farming machinery and equipment maker, said Tuesday that it has been chosen as preferred bidder for the takeover of smaller rival Kukju Machinery.
“Tong Yang Moolsan has been named preferred bidder for the takeover of Kukju Machinery,” the KOSPI-listed firm said in a filing in Seoul.
A tractor model of Kukju Machinery
In a separate filing, the seller, Dongkuk Steel Mill, also confirmed its choice of Tong Yang Moolsan among bidders.
Up for sale is the entirety of the unlisted Kukju, which ranks fourth in the local industry and logged annual revenue of 209 billion won ($181 million) and operating profits of 4.9 billion won in 2014. Dongkuk Steel Mill holds a 50.82 percent stake in the firm, while the rest is owned by creditors.
EY Han Young is managing the sale.
Local reports put Tong Yang Moolsan’s offer at over 60 billion won.
By Lee Sun-young (milaya@heraldcorp.com)