POTENTIAL FORAY
Other suitors include Saudi Aramco, Chinese firm and US builder, say sources
PETROLIAM Nasional Bhd and Saudi Aramco are among potential suitors for a controlling stake in Daewoo Engineering & Construction Co in a deal that may fetch around RM7.62 billion.
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OIL firms Petroliam Nasional Bhd (Petronas) and Saudi Aramco are among potential suitors for a controlling stake in Daewoo Engineering and Construction Co (Daewoo E&C), a deal that could fetch around two trillion won (RM7.6 billion), said South Korea’s Maeil Business Newspaper yesterday.
The 50.75 per cent Daewoo E&C stake is being put up for sale by state-owned Korea Development Bank (KDB), which in July said BoA Merrill Lynch and Mirae Asset Daewoo Securities have been appointed as its advisers on the deal.
The stake was valued at 1.48 trillion won as of Thursday’s closing price.
Petronas was considering acquiring the KDB stake, Maeil reported, citing sources.
Saudi Arabian oil giant Aramco was also interested in buying the stake, said the paper.
An unidentified Chinese construction company and an unnamed United States builder also expressed initial interest, said the paper, adding that United Arab Emirates’ Abu Dhabi Investment Council (Adic) may also be interested.
A KDB spokesman said the notice to officially kick off the stake sale was expected to come by the end of this month. KDB said last year it would put up for sale stakes in its non-core units.
Daewoo E&C, South Korea’s No.3 construction company, posted a 140 per cent jump in first-half operating profit to 467 billion won, and KDB had said it was expected to achieve positive earnings this year.
For Petronas, an acquisition of the Daewoo E&C stake would be its biggest deal since 2012 when it bought Canadian firm Progress Energy for US$5.87 billion (RM25.06 billion).
Petronas president and chief executive officer Datuk Wan Zulkiflee Wan Ariffin said last month that the company was looking to diversify its business, even considering investments in renewable energy, amid expectations that the low oil price environment would continue. Reuters