Jungheung Construction Group to acquire 50.75% of Daewoo E&C for KRW 2.06tn
- Deal value
- $1.4bn
- Stake
- 50.75%
- Implied 100%
- $2.8bn
- Revenue
- $5.6bn
- Op. income
- $385m
- Multiples
- EQV/EBIT 7.3xPSR 0.5x
Deal value ÷ stake (structure unconfirmed)
2020 연결 · DART-verified
2020 연결 · DART-verified
On implied equity value
DART 20210319001137
- Target
- Daewoo E&C · General construction
- Buyer
- Jungheung Construction Group · SI
- Seller
- KDB Investment
- Structure
- —
- Announced
- Dec 9, 2021
- Closed
- —
- Stage
- Signed
Target
Daewoo E&C is a KOSPI-listed general contractor ranked 5th in Korea's construction capability evaluation, active in housing, civil works, plants and overseas projects. It posted consolidated 2020 revenue of KRW 8.1367 trillion and operating profit of KRW 558.3 billion.
Deal rationale
Jungheung Group signed an SPA on 9 December 2021 with KDB Investment for 50.75% (210,931,209 shares); Newstomato reported the price at about KRW 2.06 trillion, below the KRW 2.1 trillion initially bid. Chairman Jeong Chang-seon said he would devote all capabilities to building a world-class construction group, having said earlier in 2021 he was considering a large company with extensive overseas business such as Daewoo E&C rather than unfamiliar manufacturing. Jungheung pledged independent management, job security, lower debt ratio, better employee treatment and internal promotions. KDB Investment's rationale was not reported; due diligence by Lee & Ko and Samil PwC followed the July 2021 preferred-bidder selection.
| Revenue | $5.6bn |
| Operating income | $385m |
| EBITDA | — |
| Net income | — |
2020 연결 · DART-verified · 20210319001137
Press coverage
- 이코노미스트 (2021-12-08): “대우건설 지분 지분 50.75%(주식 2억1093만1209주)”
- 뉴스토마토 (2021-12-09): “인수가격은 2조600억원으로 알려졌다.”
- 데일리안 (2021-01-28): “2020년 연결기준 매출 8조1367억원(-6.0%), 영업이익 5583억원, 당기순이익 2826억원(본문 2836억원 혼재)”
This is a data entry summarising filings and press reports. Please check the original sources for the figures.