Chairman of Jungheung Group
Jung Chang-sun, chairman of Jungheung Group, selected as the preferred negotiator for the acquisition of Daewoo Engineering & Construction (Daewoo E&C), said on the 9th, "Acquiring Daewoo E&C is like a second startup fulfilling a lifelong dream," adding, "I will devote all my capabilities to making it a world-class top construction group."
On the same day, Jungheung Group signed a stock purchase agreement (SPA) to acquire 50.75% of Daewoo E&C shares from KDB Investment, the largest shareholder of Daewoo E&C, at the Four Seasons Hotel in Jongno-gu, Seoul. Chairman Jung, who attended the signing ceremony in person, praised Daewoo E&C's overseas capabilities and expressed his ambition, saying, "We will rise not only as the best in the domestic industry but also as a global construction group."
In particular, he seemed to emphasize ‘stable organizational management’ after the acquisition, likely aware of the noise surrounding the acquisition of Daewoo E&C. Chairman Jung promised independent management of Daewoo E&C and guaranteed employment succession for its employees, stating, "For Daewoo E&C to make a leap forward, trust and cooperation between each employee and the organization are important." He also addressed the labor union that opposed the acquisition, saying, "We have agreed to find a mutually beneficial direction through sincere consultations."
With this SPA signing, Jungheung Group has completed the acquisition-related practical work that had been ongoing for five months since being selected as the preferred negotiator in July. Jungheung Group plans to apply for a corporate merger review with the Fair Trade Commission within this month. After completing the review, which is expected to take about one to two months, and making the payment, Jungheung Group will become the largest shareholder of Daewoo E&C. Daewoo E&C ranks 5th in this year's construction capability evaluation, while Jungheung Group’s affiliated construction companies, Jungheung Togeon and Jungheung Construction, rank 15th and 35th respectively. Combining the construction capabilities of these three companies will instantly elevate their ranking to 3rd place.
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