Korea’s STX Group Submits Bid to Buy Local Shipyard

STX Group, one of the nation's leading shipbuilders, has joined the competition to take over Daehan Shipbuilding, The Korea Times reported. The company said Wednesday it had submitted a bid to buy the cash-strapped firm the previous day, the closing day for the tender. Daehan Shipbuilding, now under a debt rescheduling program, has a 140,000 square-meter dock in Haenam, South Jeolla Province. Daehan, the world's 35th largest shipyard by order backlog, suffered operating losses of 23.3 billion won ($20.7 million) and a net loss of 191 billion won on sales of 307 billion won last year. STX will vie against an unnamed United Arab Emirates (UAE)-based shipping company for the acquisition. Creditors of the struggling shipbuilder will hold separate negotiations on terms of the takeover, including debt-rescheduling and debt-for-equity conversion, for a month before deciding on the preferred bidder. Read more.