Wednesday, January 8th, 2014
SEOUL, KOREA - Byucksan Engineering & Construction has faced a life-and-death situation, with a possible acquisition deal going up in smoke and no other suitor forthcoming.
If it goes on like this, the company's shares will be delisted from the stock market. According to industry sources on January 6, the construction contractor will make public its plans for stake sale next week when it reports its current financial situation to the Seoul Central District Court.
Earlier in September last year, the company fell into the state of total capital impairment with its debt reaching as high as 130 billion won. If it is unable to get out of this state by the end of March this year, its shares will be delisted permanently from the stock market. For the nine months between January and September last year the company posted 65.4 billion won and 150.7 billion won in operating loss and net loss.
In November last year, the contractor signed a stock sale agreement with Akid Consulting, an investment company that was supposedly established by Al-Dafa Group of Qatar, at 60 billion won. Immediately after the news, the company's stock price went up as high as 20,500 won on November 27 from 4,560 won on the 7th. But the share price took the beating after it was known that Akid Consulting was not really related with Al-Dafa Group and actually owned by a 27-year-old Korean national. Since then the Prosecutors' Office set out to investigate the matter.