U.S.-based Keystone Private Equity has been selected as the preferred bidder for Dongbu Corp., news reports said Thusrday.
The Korean midsized builder has been looking for a new owner since it started a debt workout program in July last year.
Dongbu Group headquarters in Seoul (Yonhap)
At the final bidding, Keystone Private Equity offered a bidding price that was 10 billion won higher than United Asset Management Corp.’s, which specializes in managing nonperforming loans, local reports said. The sales price is speculated to be around 200 billion won, they said.
The final deal needs approval of the court, prior to an agreement among creditors of Dongbu Corp. The creditors are Korea Development Bank, Woori Bank, KEB Hana Bank, Kyongnam Bank and NongHyup Bank.
The construction company had opened a bid in August last year and selected Pine Tree Investment and Management as the preferred bidder in October. However, the two sides failed to close the deal in December.
Hyundai Securities and Samil PwC are managing the sale of the builder.
By Kim Yoon-mi (yoonmi@heraldcorp.com)