Dongbu Construction Consortium Signs Share Purchase Agreement to Acquire Hanjin Heavy Industries

[Asia Economy Reporter Kwangho Lee] The Korea Development Bank, Export-Import Bank of Korea, and six other domestic banks comprising the Hanjin Heavy Industries Shareholders' Council, along with the Philippine BDO Bank, announced on the 15th that they have signed a contract to sell 55,572,910 shares (66.85%) of Hanjin Heavy Industries to the Dongbu Construction Consortium.

The Shareholders' Council selected the Dongbu Construction Consortium as the preferred negotiation partner through a public competitive bidding process at the end of December last year. Following this, they conducted negotiations on the stock sale agreement and verified the exercise of tag-along rights by Philippine banks before finalizing the contract.

The Korea Development Bank stated, "The transaction is expected to be completed after due diligence, price adjustments, and government approval procedures." It added, "Once the transaction is completed, the joint management (voluntary agreement) of Hanjin Heavy Industries by the creditors will also be terminated."