State-run Korea Development Bank said Monday it has begun preparatory work to sell its controlling stake at Daewoo Engineering & Construction Co.
KDB plans to pick an investment bank, a law firm and an accounting firm during next month to arrange the planned sale of its 50.75-percent stake in Daewoo Engineering that has been valued at 1.65 trillion won ($1.42 billion) as of Monday closing price.
KDB will announce the sale of the Daewoo Engineering stake by the end of this year after conducting due diligence on the construction company.
The 50.75-percent stake is held by a private equity fund owned by KDB.
In 2010, KDB, a key creditor of Kumho Asiana Group, purchased Daewoo Engineering to help the debt-ridden parent group restructure its finances.
Kumho Asiana's two subsidiaries -- Kumho Tire and Kumho Industrial -- have been under a debt restructuring program since early 2010 due to a severe cash crunch sparked by the group's purchase of Daewoo Engineering in 2006. (Yonhap)