Hyundai to Split to Accommodate DSME Acquisition

Hyundai Heavy Industries (HHI) said on 31 May that its shareholders have agreed to further restructuring in preparation for its proposed acquisition of Daewoo Shipbuilding and Marine Engineering (DSME). Under the plan, outlined in a filing to the Korea Exchange (KRX), HHI will establish a new "intermediate holding company" - named Korea...

Hyundai Heavy Industries (HHI) said on 31 May that its shareholders have agreed to further restructuring in preparation for its proposed acquisition of Daewoo Shipbuilding and Marine Engineering (DSME).

Under the plan, outlined in a filing to the Korea Exchange (KRX), HHI will establish a new "intermediate holding company" - named Korea Shipbuilding and Offshore Engineering (KSOE) - under which the DSME entity will operate. According to the filing, KSOE will be focused on research, development, and investment.

In addition, HHI will establish a new operating company, which will retain the HHI name, through which activities including naval and commercial shipbuilding, offshore construction and engineering, and the production of marine engines will take place.

Source: www.janes.com