Taekwang Co. Likely to Acquire Daewoo Int'l Busan Plant

 

An investment banker who is familiar with the deal said, "Taekwang won the bid because its offer price was much higher than anyone else." Earlier on September 5 when the main bidding was held, three companies, Baiksan Co. and Aju Corp., as well as Taekwang, participated. Chang Shin Inc., a company that joined in the preliminary bidding, was absent in the final bidding.

 

Taekwang is one of the four major global subcontractors for Nike. As it is already taking a large amount of synthetic leather shipments from Daewoo International's Busan factory, the acquisition will create significant synergies for the company. The company was once mired in a scandal as its chairman, Park Yeon-cha, was a political campaign donor to former President Roh Moo-hyun. But it regained its former reputation this year by being selected as one of the top-40 "unsung heroes" exporters by Korea EximBank. By the year's end, it expects to make more than 1 trillion won sales revenue.