DaeSun Shipbuilding & Engineering (DaeSun) is going on sale. The Export-Import Bank of Korea (Korea Eximbank), the major creditor bank for DaeSun, is slated to publicize on Oct. 23 a notice of the shipyard’s sale bidding in the major Korean economic newspapers.
Korea Eximbank advised on Oct. 20 that the sale of DaeSun will be made through an open competitive bidding to be managed by Samil PwC, an international audit and assurance services provider. Korea Eximbank holds 67.27% equities in the shipyard, and Korea Development Bank and Ksure (Korea Trade Insurance Corp.) hold the rest in form of the shipyard’s debentures.
A Korea Eximbank official said with caution: “It has not been decided as yet on whether the total 67.27% equities should be sold. We have to take more time to decide whether we should sell our whole equities in the shipyard.”
The shipyard’s creditors have come to a conclusion that it can survive viable on its own. DaeSun has made every effort to overcome its crisis by persistently inking win-win agreement between labor workers and management since 2013, aiming to normalize its management. As reported in a statement filed in last August, DaeSun posted in the first half of this year sales of 118 billion won, business deficit of 6.7b won and a net profit of 5b won respectively.
Since established in 1945, DaeSun had enjoyed heydays, headquartered at Bongrae-dong, Yongdo-gu, Busan with two workshops at Cheonghag-dong, Busan and three workshops at Dadae-dong, Saha-gu, Busan. The shipbuilder has struggled with difficulties amid the global economic slumps caused by global financial crisis, and has pursued financial restructure under management by its creditors since 2010.
The industry players are positive about the prospect of DaeSun’s sale. It has a competitive edge in the small- and medium-sized shipbuilding markets thanks to its differentiated types of ships. DaeSun is highly acclaimed in the shipbuilding records and qualities of eco-friendly chemical products carriers in particular.