Taekwang Industrial’s push into South Korean shipbuilding has stalled after its consortium failed to clinch a deal to buy K Shipbuilding, with the buyer and sellers unable to bridge differences over the transaction structure and terms, according to Taekwang Industrial’s /KRX disclosure.
The company said it formed a consortium with strategic and financial investors, submitted a revised preliminary letter of intent on 27 February and filed its bid proposal with the sale adviser on 26 March. Talks continued with the sellers and sale adviser, but the gap between Taekwang Industrial’s proposal and the sellers’ requirements remained unresolved.
The company was notified by the sale adviser on 22 June that the public competitive bidding process had ended.
The failed process closes the current sale round for K Shipbuilding, the South Korean yard formerly known as STX Offshore & Shipbuilding.
United Asset Management Company, known as UAMCO, and KHI each hold 49.79% of the shipbuilder.
The Taekwang-led bidding group included Osung Advanced Materials and Green Harbor Asset Management. It was the only participant in the final bidding in March but was not selected as preferred bidder.
K Shipbuilding operates the Jinhae Shipyard in Changwon, Gyeongsangnam-do, and traces its roots to Dongyang Shipbuilding, founded in 1967. The company adopted its current name in July 2021 and is focused on medium-sized commercial vessels.
