Business Sale Announcement... Letter of Intent Submission in November
Overview of LH's Asan Energy Project Team Korea Land and Housing Corporation (LH) announced on the 28th that it will officially begin the sale process of its 'district energy business,' which is less related to its core operations.
The district energy business involves building power plants to generate electricity and supplying the heat produced during this process to specific areas.
This sale initiative is part of LH's effort to focus on its core roles, following the government's 'LH Innovation Plan' announced in June last year.
As the government's LH Innovation Plan includes the abolition of the district energy business, LH selected Samjong KPMG as the lead sales agent in July.
The sale target includes the entire LH district energy business (integrated Daejeon Southwest, Asan Baebang, and Tangjeong districts), and the transaction will be conducted through a comprehensive business transfer method. The sale will proceed via an open competitive bidding process.
Eligibility for bidding requires that participants do not fall under the disqualification criteria specified in Article 10 of the District Energy Business Act; both individuals and corporations may participate.
The sale schedule is as follows: submission of Letter of Intent (LOI) by November 24, preliminary bidding on December 6, main bidding in February 2023, and signing of the transfer contract in April 2023.
Shin Kyung-chul, Head of LH's Land and Urban Development Headquarters, stated, "Through this business sale in accordance with the government's LH Innovation Plan, we expect LH to focus more on its core roles and improve financial soundness."
Detailed information regarding the sale can be found in the 'Korea Land and Housing Corporation District Energy Business Sale Announcement' posted on the LH website under the public offering notice section.
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