Daewoo E&C stake up for sale

Korean chaebol (conglomerate) Kumho Asiana has put its 33% stake in Daewoo Engineering & Construction up for sale.

Kumho Asiana bought the stake in Daewoo E&C in 2006 for some US$ 5.2 billion. However, the fall in the company's share price as economic conditions have deteriorated means the one-third stake may now only be worth half that.

Kumho Asiana is reportedly facing cash-flow problems, forcing it to sell the stake at a capital loss.

Daewoo E&C was ranked 46^th in iC's 2008 listing of the world's 200 largest construction companies. It is one of South Korea's three largest construction companies, with revenues last year of KRW 6591 billion (US$ 5.15 billion).