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Samra Midas Group Likely Win Korea Line Bidding

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Monday, August 5th, 2013
SEOUL, KOREA- In a bidding war to acquire Korea Line, a shipping company under a workout program, Samra Midas Group has become the most likely winner by tendering the highest offer price. Korea Line had been the nation's fourth-largest shipping company by revenue before it filed for bankruptcy protection in early 2011.
 
According to investment banking sources on August 4, Samra Midas Group, a mid-sized conglomerate with businesses in construction and manufacturing, offered a price of 225 billion won, including a 165-billion-won capital increase and a 60-billion-won debt assumption.
 
Meanwhile, other bidders such as Polaris Shipping and Daelim Corp. made offers of 215 billion won and 195 billion won, respectively. Investment bankers close to the deal said it is almost a done deal and the court and principal underwriter Samil PricewaterhouseCoopers will soon select Samra Midas as the preferred negotiating partner. Korea Line runs bulk carriers and liquefied natural gas ships. Its major clients include POSCO, Korea Electric Power Corp., and Korea Gas Corp.

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