Daewoo E&C stake up for sale
29 June 2009
Korean chaebol (conglomerate) Kumho Asiana has put its 33% stake in Daewoo Engineering & Construction up for sale.
Kumho Asiana bought the stake in Daewoo E&C in 2006 for some US$ 5.2 billion. However, the fall in the company's share price as economic conditions have deteriorated means the one-third stake may now only be worth half that.
Kumho Asiana is reportedly facing cash-flow problems, forcing it to sell the stake at a capital loss.
Daewoo E&C was ranked 46th in iC's 2008 listing of the world's 200 largest construction companies. It is one of South Korea's three largest construction companies, with revenues last year of KRW 6591 billion (US$ 5.15 billion).
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