Ten bidders have entered the auction for Welliv Co., a food-making unit under financially-troubled Daewoo Shipbuilding & Marine Engineering Co. (DSME), and given the competitive interest, the shipbuilder is expected to fetch around 80 billion won ($ 69.77 billion) from the sale.
According to the investment banking industry, sales advisor Samjong KMPG received 10 preliminary tenders. It will shortlist bidders next week and allow them due diligence in the target company.
The names of the contestants remain anonymous, but industry project poultry company Harim Group would have taken part.
DSME’s last year’s attempt to sell Welliv fell through. Founded in 2005, Welliv in which DSME holds a 100 percent stake, provides meal, hospitality, security, and transportation services primarily for sea-going industry worldwide. The firm posted 12.6 billion won in operating profit on revenue of 221.7 billion won at the end of 2015.
By Yoo Tae-yang
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]