Former Daewoo Executives Positioning for Takeover of former Daewoo Group Firms
Daewoo might have collapsed in the wake of the 1997 Asian fiscal meltdown, but a Korea Herald article notes that
former executives of the defunct Daewoo Group are moving to acquire surviving affiliates of the once massive conglomerate.
A number of Daewoo units that were taken by over banks after the group collapsed will be put up for sale soon. The companies on the auction block will include Daewoo Capital Corp., Daewoo Precision Industries Co., Daewoo Engineering & Construction Co., Daewoo International Corp., Daewoo Shipbuilding & Marine Engineering Co. and Daewoo Electronics Corp.
The contract for the sale of Daewoo Capital to a consortium of Aju Corp. and Shinhan Bank is expected to be signed this month. Aju Corp. is the largest shareholder of Daewoo Motor Sales. Its president, Lee Dong-ho, is a former secretary to Daewoo chairman Kim Woo-choong.
The contract, if signed, will mean that Daewoo Capital is taken over by those friendly to the former Daewoo Group. Leaders of the Aju Group, Moon Kyu-young and Moon Jae-young, used to work at a Daewoo London office. In 1988, the Aju Group joined forces with Daewoo Motor to enter the domestic rent-a-car market.
Kim Woo-il, president of Daewoo Group Holdings and former managing director at the Daewoo Group, has formed a consortium with the Military Mutual Aid Association and institutional investors to takeover Daewoo Engineering & Construction, Daewoo International, DSME and Daewoo Electronics.
According to the Korea Herald, Kim Woo-il has attracted $1.4 billion from institutional investors, venture capitalists, midsize businesses and private equity funds.
"I thought that someone, including me, associated with Daewoo must take them over," said Kim Woo-il.
Many ex-Daewoo officers appear to be considering participating in the takeover of former Daewoo companies through the formation of private equity funds.
Daewoo Securities President Sohn Bok-jo is said to be pushing ahead with the formation of a private equity fund amounting to $200 million this year to take over well-performing former Daewoo affiliates.
Another aspect of the Daewoo aquistions is its link with ex-Daewoo chairman Kim Woo-choong's wish for comeback. Kim returned home and was arrested last week after spending five years in self-imposed exile.
He faces a possible lengthy prison sentence on charges of misappropriation of funds that led to the collapse of his business empire.
former executives of the defunct Daewoo Group are moving to acquire surviving affiliates of the once massive conglomerate.
A number of Daewoo units that were taken by over banks after the group collapsed will be put up for sale soon. The companies on the auction block will include Daewoo Capital Corp., Daewoo Precision Industries Co., Daewoo Engineering & Construction Co., Daewoo International Corp., Daewoo Shipbuilding & Marine Engineering Co. and Daewoo Electronics Corp.
The contract for the sale of Daewoo Capital to a consortium of Aju Corp. and Shinhan Bank is expected to be signed this month. Aju Corp. is the largest shareholder of Daewoo Motor Sales. Its president, Lee Dong-ho, is a former secretary to Daewoo chairman Kim Woo-choong.
The contract, if signed, will mean that Daewoo Capital is taken over by those friendly to the former Daewoo Group. Leaders of the Aju Group, Moon Kyu-young and Moon Jae-young, used to work at a Daewoo London office. In 1988, the Aju Group joined forces with Daewoo Motor to enter the domestic rent-a-car market.
Kim Woo-il, president of Daewoo Group Holdings and former managing director at the Daewoo Group, has formed a consortium with the Military Mutual Aid Association and institutional investors to takeover Daewoo Engineering & Construction, Daewoo International, DSME and Daewoo Electronics.
According to the Korea Herald, Kim Woo-il has attracted $1.4 billion from institutional investors, venture capitalists, midsize businesses and private equity funds.
"I thought that someone, including me, associated with Daewoo must take them over," said Kim Woo-il.
Many ex-Daewoo officers appear to be considering participating in the takeover of former Daewoo companies through the formation of private equity funds.
Daewoo Securities President Sohn Bok-jo is said to be pushing ahead with the formation of a private equity fund amounting to $200 million this year to take over well-performing former Daewoo affiliates.
Another aspect of the Daewoo aquistions is its link with ex-Daewoo chairman Kim Woo-choong's wish for comeback. Kim returned home and was arrested last week after spending five years in self-imposed exile.
He faces a possible lengthy prison sentence on charges of misappropriation of funds that led to the collapse of his business empire.
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