Global Seaa Signs Acquisition Agreement with Ssangyong Construction... Returns to Domestic Ownership After 7 Years

Ssangyong Construction Company Building Exterior

[Asia Economy Reporter Kim Hyemin] Global Sea Group has signed a contract to acquire Ssangyong Construction. It has been seven years since Ssangyong Construction was sold to the Investment Corporation of Dubai (ICD).

According to Global Sea and Ssangyong Construction on the 17th, Global Sea Group submitted a Letter of Intent (LOI) to ICD for the acquisition of Ssangyong Construction last March, selected Mirae Asset Securities as the lead manager for the purchase, and has been conducting detailed due diligence for the acquisition.

After the due diligence, negotiations on shares, price, and future operations were held with ICD, and a Stock Purchase Agreement (SPA) was signed on the 14th. Once the Fair Trade Commission's corporate merger review is completed, Global Sea Group will become the largest shareholder of Ssangyong Construction.

During the negotiation process, ICD and Global Sea agreed that ICD would retain a 10% stake even after selling the shares. By maintaining a partial stake, Ssangyong Construction is evaluated to have kept open the possibility of continuous orders in Dubai or the Middle East region. In the future, ICD may also participate as a partner in businesses conducted by Global Sea.

Global Sea owns about 10 affiliates, including Sea Sangyeok, a global clothing manufacturing and sales company; Taerim Paper and Taerim Packaging, specialists in corrugated cardboard and packaging; and Sea STX Entech, a global EPC specialist company. The acquisition of Ssangyong Construction has been pursued as one of the goals to achieve the 'Vision 2025,' which aims to develop the group into a company with sales of 10 trillion won and operating profit of 1 trillion won by 2025.

Ssangyong Construction will be able to pioneer new markets such as infrastructure projects in Latin American countries, as well as projects ordered by Global Sea affiliates. Global Sea is expected to explore new business opportunities by utilizing the networks Ssangyong Construction has established in the Middle East, Singapore, Malaysia, and other regions.

A representative of the Investment Corporation of Dubai said, "During the seven years that ICD operated as a shareholder, Ssangyong Construction successfully expanded its business by finding various opportunities in Korea and worldwide. ICD will continue to support the development of Ssangyong Construction together with Global Sea." He added, "We are confident that Global Sea will steadily develop Ssangyong Construction as the new major shareholder."

Kim Gi-myeong, CEO of Global Sea, said, "We will complete the remaining acquisition procedures well and strive to fulfill our corporate social responsibilities along with the continuous growth of the group." A Ssangyong Construction official said, "All employees have high expectations for welcoming a private major shareholder after 24 years," adding, "This will be a second leap to regain past glory and will serve as a great motivation for employees."

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