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February 1, 2019

HHI signs deal with KDB to acquire 55.7% stake in DSME

South Korea-based shipbuilding group Hyundai Heavy Industries (HHI) has signed a conditional deal to buy Korea Development Bank's (KDB) 55.7% stake in Daewoo Shipbuilding and Marine Engineering (DSME).

South Korea-based shipbuilding group Hyundai Heavy Industries (HHI) has signed a conditional deal to buy Korea Development Bank’s (KDB) 55.7% stake in Daewoo Shipbuilding and Marine Engineering (DSME).

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The deal, which was signed in the form of a memorandum of understanding (MoU), will enable HHI to buy a controlling stake in its rival DSME and establish a joint shipbuilding venture with KDB, which holds the largest share in DSME.

As part of the deal, KDB is expected to transfer its entire share in DSME to the new joint venture (JV). KDB will also own a 7% share in the JV, with KRW1.25tn ($1.12bn) worth of preferred shares.

The deal will see HHI owing a 28% stake in the JV, which will control HHI’s shipbuilding unit and Daewoo Shipbuilding.

KDB and HHI will also provide liquidity support of KRW2.5tn ($2.25bn) to DSME, reported Reuters.

"We will pursue maximum synergy effects from the consolidation while still maintaining competition."

If finalised, the deal will see the privatisation of DSME two decades after the Government of South Korea provided its first set of funding to the company as a result of the Asian financial crisis.

In a statement cited by asia.nikkei.com, HHI said: “The agreement between Hyundai Heavy Industries Group and Korea Development Bank is a solution for the recovery of the domestic shipbuilding industry.

“We will pursue maximum synergy effects from the consolidation while still maintaining competition.”

KDB revealed its intention to sell its stake in DSME to Samsung Heavy Industries, one of three biggest shipbuilders in South Korea.

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img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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