Petronas, Aramco keen on $1.8 bn Daewoo E&C stake

SEOUL: Oil firms Petronas and Aramco are among potential suitors for a controlling stake in Daewoo Engineering & Construction Co, a deal that could fetch around 2 trillion won ($1.78 billion), South Korea’s Maeil business newspaper said on Friday.
The 50.75 per cent Daewoo E&C stake is being put up for sale by state-owned Korea Development Bank (KDB), which in July said BoA Merrill Lynch and Mirae Asset Daewoo Securities have been appointed as its advisers on the deal. The stake was valued at 1.48 trillion won as of Thursday’s closing price. Malaysian oil company Petroliam Nasional Bhd (Petronas) is considering acquiring the KDB stake, Maeil reported, citing unnamed investment banking sources and a source with knowledge of Petronas. Saudi Arabian oil giant Aramco is also interested in buying the stake, the paper said. An unidentified Chinese construction firm and an unnamed US builder also expressed initial interest, it said, adding that United Arab Emirates’ ADIC may also be interested. — Reuters