SM Group, a medium-sized shipping group in South Korea, is set to be picked as the preferred bidder for STX Corp. this week, industry sources said Thursday.
According to the sources, SM Group and three others made offers earlier this week to buy the cash-strapped STX, an affiliate of the now-defunct shipping conglomerate STX.
The logo of SM Group (Yonhap)
Since mid-February, trading of STX has been suspended on the Seoul bourse due to the erosion of its capital base. The company faces the risk of being delisted if it fails to come up with measures to bolster its capital base.
SM Group reportedly plans to pour 130 billion won into STX.
The state-run Korea Development Bank owns 39.59 percent of STX, with Nonghyup holding 10.07 percent of the trading company.
Late last year, SM Group, which owns South Korea's No. 2 bulk carrier Korea Line Corp., acquired the now-defunct Hanjin Shipping Co.'s US-Asia route and other assets for 37 billion won ($32 million). (Yonhap)