08MAR2019 - NEWS - Hyundai Heavy Industries set to ink official contract with Korea Development Bank to takeover Daewoo Shipbuilding & Marine Engineering

South Korea based shipbuilding company Hyundai Heavy Industries (HHI) is set to sign an official contract with Korea Development Bank (KDB) for the takeover of Daewoo Shipbuilding & Marine Engineering (DSME). In January, HHI signed a conditional agreement with KDB to acquire the controlling stake in DSME. HHI will create a holding company to control its shipbuilding business after the takeover. HHI will be the largest shareholder of the holding company, controlling a 26% stake while KDB will be granted a 18% stake in the company, becoming the second largest shareholder. HHI’s takeover of DSME has been facing strong oppositions from unions of both yards as they worry that the merger would lead to massive layoffs. Both unions have passed plans to go on a strike to protest against the merger.

Published by Editor - www.Livebunkers.com at 08-Mar-2019 05:38:34 [UTC] , contact editor at editor@livebunkers.com