Daesun Chosun Signs Definitive M&A Agreement Worth 160 Billion KRW with Dongil Steel

Daeseon Shipbuilding, First Step Under Dongil Steel System on 29th After Three Sale Attempts Since 2017
Dongil Steel Promises Full Worker Employment Succession... "Aiming for Early Normalization of Daeseon Shipbuilding"

Daesun Shipbuilding and Dongil Steel, joint acquirers, signed the main acquisition contract for Daesun Shipbuilding worth 160 billion KRW on the 29th at Daesun Shipbuilding headquarters in Yeongdo-gu, Busan, with the consent of the creditors' group. The Export-Import Bank of Korea participated in the contract ceremony via video conference on behalf of the creditors' group. From the left in the photo: An Jong-hyeok, Head of Corporate Restructuring Division at the Export-Import Bank, Lee Soo-geun, CEO of Daesun Shipbuilding (left on the monitor), Jang In-hwa, Chairman of Dongil Steel (right on the monitor), Kwon Woo-seok, Vice President of the Export-Import Bank. Photo by XXX

[Asia Economy Reporter Jo Gang-wook] The Export-Import Bank of Korea announced on the 29th that it has signed the final acquisition contract worth 160 billion KRW for Daesun Shipbuilding with joint acquirers including Dongil Steel (Sewoon Steel, Dongwon General Trading, Dongwon Housing, Dongil Suite) after obtaining consent from the creditors' group.

Daesun Shipbuilding, after three attempts at sale since 2017, selected Dongil Steel as the preferred negotiation partner last October and signed a mutual memorandum of understanding (MOU) for the final acquisition contract in November.

Dongil Steel then proceeded with detailed due diligence and recruitment of joint acquirers, completing negotiations on the detailed terms of the acquisition contract between the parties.

With the signing of the final acquisition contract on this day, Daesun Shipbuilding is expected to accelerate management normalization under the Dongil Steel system, which will become the largest shareholder in the future.

Dongil Steel has promised to continue the shipbuilding business and guarantee employment for all existing workers, and plans to achieve early normalization of Daesun Shipbuilding through efficient utilization of the yard by unifying the yards (reorganizing Plant 3 (Dadae) as a new shipbuilding specialized plant and Plant 1 (Yeongdo) as a repair specialized shipyard) and creating synergy with existing business divisions.

An official from the Export-Import Bank of Korea stated, "In a situation where most small and medium shipbuilders have shifted their business or suspended operations due to restructuring after the 2008 financial crisis, the successful completion of this M&A, along with the conclusion of the rehabilitation process following the acquisition of Sungdong Shipbuilding & Marine Engineering by the HSG consortium in May, has once again created a successful case of M&A among small and medium shipbuilders."

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