STX Group has submitted a bid to takeover Daehan Shipbuilding.

The South Korean shipyard has suffered operating losses of KRW23.3bn ($20.7m) on sales of KRW307bn ($270m) last year.

Daehan Shipbuilding, now under a debt rescheduling programme, has a 140,000m2 dock in Haenam, South Jeolla Province.

STX will compete against a shipping company in the UAE for the acquisition.

Creditors of the shipbuilder will hold separate negotiations on terms of the takeover, including debt-rescheduling and debt-for-equity conversion, for a month before deciding on the preferred bidder.

Daewoo Shipbuilding & Marine Engineering and Iran-based Ghadir Investment have pulled out of the take over plan.