S.Korea Kumho picks KDB, Nomura for Daewoo Eng sale
SEOUL, July 1 (Reuters) - South Korea's Kumho Asiana Group said on Wednesday it had picked Korea Development Bank (KDB) and Nomura (8604.T) as financial advisers for the proposed sale of Daewoo Engineering & Construction (047040.KS).
Kumho Asiana, South Korea's 13th-largest business group, said on Sunday it would put Daewoo up for sale to ease worries over its liquidity. Petrochemicals-to-airline conglomerate Kumho Asiana bought Daewoo, the country's No. 3 builder, for about $5 billion in 2006 in a debt-fuelled acquisition binge.
Kumho Asiana and financial investors control 72 percent of Daewoo and have been mulling several options for sale, from a tender offer to a sale to a private equity fund run by KDB.
KDB, a leading creditor of Kumho Asiana, wants a majority stake in Daewoo to be sold in an auction, the Chosun Ilbo reported on Tuesday. KDB also confirmed on Wednesday that it was named one of the joint financial advisers.
Shares in Daewoo Engineering rose 2.71 percent to 13,250 won by 0203 GMT, leading the broader market's 0.58 percent gain. (Reporting by Shin Jieun; Writing by Rhee So-eui; Editing by Ken Wills)
