Top Korean express firm up for sale
Korea Express, one of the leading express firms in South Korea, could gain a new owner within the next few months. A deal could reportedly be worth as much as EUR 1.4 billion.
The company, which has been in financial receivership since 2000 due to heavy debts, said it has gained court permission for a major capital increase enabling it to issue new shares representing an overall 60% holding.
Reuters news agency, giving the company’s market valuation as 1.6 trillion won (EUR 1.1 billion) reported that analysts said the sale could raise up to two trillion won (EUR 1.4 billion). It cited a spokesman as saying the shares would be issued once a buyer had been found.
Korean newspaper Hankyoreh said potential buyers had until December 11 to submit bids and could carry out due diligence until January 4. A preferred bidder would be selected in mid-January and a deal sealed in late February. The sale is being handled by a Merrill Lynch-led consortium.
The company’s major shareholders include Goldman Sachs, Korean financial institutes and shipping firm STX. Media speculation focused on Korean companies as the likely bidders.
Korea Express offers a broad range of freight transport and logistics services, including domestic parcel delivery.
