SK Group, South Korea’s No. 3 conglomerate, on Tuesday denied rumors that it has decided to take over a troubled shipbuilder.
“Rumors that SK Group has sought to acquire Daewoo Shipbuilding & Marine Engineering Co. are groundless,” SK Holdings Co. said in a filing.
Shares of Daewoo Shipbuilding spiked 20 percent at one point in morning trade after local media reported that the Korea Development Bank, the shipyard’s largest shareholder and creditor, has agreed with SK Group to sell a controlling stake in the company.
The KDB, the state-run policy lender, also refuted the news reports, saying that it is not in talks with SK Group to sell the ailing company.
Daewoo Shipbuilding, the country’s third-largest shipyard, has got trapped in massive losses that slammed the entire industry, stemming from a downturn in the overall shipbuilding sector.
Last week, the KDB and other creditor banks decided to funnel 4.2 trillion won ($3.7 billion) into the company to help it stay afloat, fanning public criticism that a large amount of taxpayer money will be used to bail out a financially troubled shipbuilding company despite a slim chance for its revival.
Daewoo Shipbuilding closed at 7,030 won on the Seoul bourse as of 2:40 p.m., up 7.66 percent from the previous session, while SK Holdings fell 5.58 percent to 254,000 won. The main KOSPI rose 0.65 percent to finish at 2,048.4 points. (Yonhap)
