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Tong Yang Moolsan selected as preferred bidder for Kukje Machinery

Collected: 2016.04.06

Distributed: 2016.04.07

Source: Go Direct

South Korea’s Dongkuk Steel Mill Co. said on Tuesday that it has selected Tong Yang Moolsan Co., a manufacturer of agricultural machinery and equipment, as the preferred bidder for Kukje Machinery Co., its agricultural machinery unit. The announcement comes after Dongkuk Steel Mill presented a plan in December to sell a full stake in the company to improve the steel group’s overall financial health.

Dongkuk Steel Mill owns 50.82 percent of shares in Kukje Machinery while the remaining by creditor banks after the machinery company entered into a workout program in 2011. The sale price is estimated to be about 60 billion won ($51.96 million).

Dongkuk Steel Mill has been also under stringent streamlining through non-core asset sales to improve its financial health. It expects the sale of its agricultural machinery unit would further help improve its balance sheet.

Kukje Machinery is a leading manufacturer and supplier of agricultural equipment including tractors, combine harvesters and vegetable transplanters. It also makes diesel engines. The company takes up a large share of the local agricultural equipment market which is also controlled by Tong Yang Moolsan, Daedong Industrial and LS Mtron Ltd.

Meanwhile, Tong Yang Moolsan is promoting the merger of Kukje Machinery jointly with Truben Investment Co., a local private equity fund.

By Chun Gyung-woon

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