South Korean shipyard Daewoo Shipbuilding & Marine Engineering Co. (DSME) said Monday it will acquire an additional 4.7 percent stake in its ship parts subsidiary Samwoo Heavy Industry Co. for 35 billion won (US$26.5 million).
The purchase of 5.5 million shares will raise DSME's stake in Samwoo Heavy Industry to 97 percent, the shipyard said in a regulatory filing.
DSME said it will acquire the stake through a debt-equity conversion and participation in the affiliate's planned rights offering.
The shipbuilder added the envisioned stake purchase is designed to improve Samwoo Heavy Industry's financial soundness.
DSME, meanwhile, is scheduled to approve its new name and management at an extraordinary shareholders' meeting in two weeks in the run-up to its sale to Hanwha Group, the seventh-largest conglomerate in Asia's fourth-largest economy.
The shipyard also plans to announce its new vision and future management strategies in an effort to turn itself around.
In late April, South Korea's antitrust regulator approved Hanwha's proposed acquisition of DSME on the condition that it take "corrective measures" to prevent potential anti-competition practices.
The go-ahead has removed the last hurdle for Hanwha's push to take over DSME. Hanwha earlier won approval from seven foreign regulators, including the European Union, Japan and China.
Source: Yonhap News Agency