South Korea’s Samra Midas Group (SM Group) was picked as a preferred bidder for DongAh Construction Industrial Co., which has been under court receivership since 2014. It would be the second buyout of a builder for SM Group this year if SM Group succeeds in acquiring DongAh Construction Industrial.

According to the investment banking (IB) industry on Thursday, Samil PricewaterhouseCoopers, the underwriter of the deal, and Seoul Central District Court chose SM Group as the preferred bidder for the ailing construction company. The acquisition price is estimated at around 30 billion won ($25.3 million). They aim to sign a main buyout agreement by next month after additional due diligence.

SM Group’s possible takeover of DongAh Construction Industrial would further accelerate its goal of becoming a dominant player in the local construction market through aggressive mergers and acquisitions.

Since 2010, SM Group has acquired a number of local builders including Kukdong Engineering & Construction Co. and Woobang Corp. Last month, it also took over Sungwoo Construction Co., which was under court protection. The group’s Chairman Woo Oh-hyun vowed to grow the group as a major player in the local construction sector and buy five to six more builders under court receivership to achieve the goal. Builders up for grabs in the local M&A market are Woorim Engineering & Construction Co. and STX Construction Co.

DongAh Construction Industrial, founded in 1945, is famous for its waterway construction project in Libya and engaged in civil engineering, architecture, and roadway contractions. After struggling in the wake of the 1997-98 Asian financial crisis, it went under court receivership in 2000. In 2008, it was acquired by Prime Group, but it had to seek court receivership again in August 2014.

By Chun Gyung-woon and Yoo Tae-yang

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