Jungheung Construction "Daewoo Construction Acquisition to Complete Within the Year... Will Make 'Prugio' No.1 in Korea"

Jungheung "Acquisition of Daewoo Construction Without External Borrowing
Plans to Acquire Overseas Engineering Firms
Expanding Competitiveness in Overseas Civil Engineering and Plant Business
Daewoo Construction to Become the World's Leading Real Estate Platform"

Jungheung Group Headquarters

Jungheung Construction Group, selected as the preferred bidder for the acquisition of Daewoo E&C, announced on the 6th that it plans to complete the acquisition within the year and develop Daewoo E&C into the world's top real estate platform through active future investments.

On the same day, Jungheung Group released an official statement saying, "We will swiftly proceed with the signing of a memorandum of understanding (MOU) with KDB Investment, the seller of Daewoo E&C, due diligence, stock purchase agreement (SPA), and corporate merger notifications to complete the acquisition within this year."

Regarding the financing of the acquisition, Jungheung Group plans to temporarily borrow some funds in the form of a short-term bridge loan. However, the group explained, "Since the entire amount will be repaid with the group's operating cash flow expected to flow in by next year, the acquisition of Daewoo E&C will effectively be done without external borrowing."

Jungheung Group expressed its commitment to investing generously to elevate Daewoo E&C's 'Prugio' brand to the number one position domestically. A Jungheung Group official stated, "We are confident that combining Jungheung's strength in large-scale real estate development capabilities with Daewoo E&C's excellent housing brand, outstanding construction, civil engineering, and plant construction skills, as well as manpower, will enable us to grow into a leading construction specialist group representing South Korea."

In particular, the group plans to focus on continuous profit generation through large-scale real estate development projects both domestically and internationally, moving beyond simple construction. They are also considering acquiring leading overseas engineering companies to fundamentally enhance competitiveness in overseas civil engineering and plant businesses. Alongside this, they plan to secure renewable energy fields and advanced ICT technologies to build Daewoo E&C's competitiveness as a world-class 'real estate platform.'

A senior Jungheung Group official said, "Based on our capabilities in architecture, infrastructure, and engineering, we will open an era of advanced developers encompassing large-scale real estate development and operations together with over 5,400 Daewoo E&C employees," adding, "Since Daewoo E&C is a top construction company, we will strive to enhance the pride of its employees."

Earlier, on the previous day, KDB Investment (KDBI), the largest shareholder of Daewoo E&C (holding 50.75% stake), announced that it had designated Jungheung Construction as the preferred bidder for the sale.

Jungheung Construction Group currently oversees more than 30 subsidiaries in housing, construction, and civil engineering sectors, including Jungheung Togeon, ranked 15th in construction capability evaluation, and Jungheung Construction, ranked 35th. As of 2021, Jungheung Group's total assets amount to approximately 9.2 trillion KRW.

Daewoo E&C is a major construction company that achieved first place in housing supply performance consecutively in 2019 and 2020, as well as cumulative supply performance, based on its premium residential brand Prugio. It also possesses solid manpower along with world-class civil engineering technology and engineering capabilities.

An industry insider commented, "By acquiring Daewoo E&C, which has premium brand power in the housing sector and expertise in overseas business and plants, Jungheung Group is expected to establish a foundation for both quantitative growth and qualitative advancement."

This content was produced with the assistance of AI translation services.