South Korea’s shipbuilding group Hyundai Heavy Industries (HHI) has signed a formal deal to proceed with the acquisition of its smaller rival, Daewoo Shipbuilding & Marine Engineering (DSME).
The deal was signed on Friday with Korean state lender Korea Development Bank (KDB) and follows a conditional agreement the two parties reached in January.
The parties agreed that KDB, which holds a 55.7 percent stake in DSME with an estimated worth of KRW2.16 trillion (USD1.94 billion) will sell its stake.
KDB will transfer its DSME common stock to HHI and buy KRW1.5 trillion worth of HHI stocks, Hyundai Heavy confirmed today in a stock exchange filing.
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