Speedy sale process for Daewoo E&C faces complaints from suitors Potential buyers complain about short due diligence period and insufficient information
이 기사는 2021년 06월 17일 07:50 더벨 유료페이지에 표출된 기사입니다.Suitors for Daewoo E&C are complaining about a short due diligence period and insufficient information to prepare bids, as KDB Investment proceeds with a sale process for its controlling stake in the construction firm in an unusually speedy manner.
Korea Development Bank (KDB)’s mergers and acquisitions division and BoA Securities, which are managing the sale, have set the deadline for submitting binding bids by next Friday, industry sources said. They are said to be encouraging potential buyers to submit serious offers.
But some of the suitors said they were embarrassed by the seller pushing a speedy process. Daewoo E&C has long been considered as a potential candidate for sale, but the seller began the sale process in earnest only a few weeks ago.
Potential buyers interested in bidding for Daewoo E&C include Jungheung Construction, a consortium consisting of DS Networks, SkyLake Equity Partners and IPM Group, and private equity firms IMM Private Equity and MBK Partners.
The seller skipped the preliminary round of bidding, probably under the assumption that there was enough communication with potential buyers before the formal sale process was kicked off. It is said that the seller focuses on finding a buyer that is serious about buying.
However, the grumbling about a short due diligence timeframe is growing among potential buyers. Typically, a seller provides bidders about six weeks for detailed due diligence before receiving binding offers. The period can be extended depending on deals.
Potential buyers of Daewoo E&C are complaining that they have been given a significantly short time to complete due diligence.
They also pointed out that information provided by the seller was not sufficient to analyze the target.
“Much of the company’s information available in a virtual data room is obtainable from its annual reports,” said an investment banking source, adding that this, combined with a short due diligence period, makes potential buyers more difficult to prepare binding bids.
The speedy sale process also raises concerns with respect to potential buyers’ fundraising plans. KDB Investment is said to be seeking a value of 2 trillion won ($1.8 billion) for its 50.75% stake in Daewoo E&C. Given the large size of the deal, potential buyers need to draw up tentative plans to finance the acquisition cost before submitting final offers. But they said they don’t have enough time for that.
Some are questioning whether the seller is truly willing to offload its stake. Others speculate that there could be a buyer that the seller has in its mind.
“Pushing a speedy process could be part of the seller’s strategy to encourage potential buyers to participate in the bidding,” an industry insider said, but adding that submitting binding offers without sufficient due diligence information is clearly a burden for potential buyers. (Reporting by Hee-yeon Han)
최신뉴스 in 전체기사
- 에스엘바이오닉스, 130억 CB 발행 "자회사 유증 참여"
- ‘고덕신도시 유보라 더 크레스트’ 정당계약…조기마감 예감
- LX인베 자회사 LX자산운용 성장세 '눈길'
- JC파트너스, 에어프레미아 투자 집행 '착착'
- '투자'에 방점 LG에너지솔루션, '선순환 사이클' 가동
- [지배구조 분석/LT그룹]희성전자와 구본식 회장 간 거래는 '윈윈'이었을까
- 대우조선해양건설, 공공부문 신용등급 2단계 상승
- [플랫폼 손잡는 택배사]1년새 21% 커진 시장, 협력은 선택 아닌 '필수'
- [2021 더벨 유통포럼]"온오프라인 유통채널 차별화에 답있다"
- [2021 더벨 유통포럼]"유통기업, CEO 주도 '준법경영 체계' 재정비 시급"
Translated by Ryu Ho-joung 의 다른 기사 보기
- Samsung SDI earns record EBITDA in second quarter
- Shinsegae takes full control of Starbucks Korea, with a string attached
- LGES investment activity boosted by positive cash flow
- IMM Investment to invest $35 mil in outdoor gear maker Helinox
- Samsung Life Insurance to launch online sales in China
- Posco International’s Myanmar gas business sees sharp profit drop
- Kakao Entertainment raises $529 mil in commercial paper issues
- Investment and finance experts join Kurly ahead of planned IPO
- Naver uses $400mil treasury shares for staff compensation and share swaps
- Tmon delays IPO after its chief executive change
더벨 서비스 문의
02-724-4102유료 서비스 안내