STX likely to be sold as auction pulls in multiple bidders

STXSTX Corp., the remaining trading entity of now-defunct South Korea’s STX Group that used to be a global shipyard, drew multiple bidders including Samra Midas Group which recently acquired the country’s top sea-liner Hanjin Shipping. 

The auction led by EY Han Young, the Korean member firm of Ernst & Young, drew three to four bidders, which could set the price from 90 billion won ($78 million) to 100 billion won. 

Harim Group dubbed as a strong candidate did not make a final bid. 

The company is under joint creditors’ custody. State-run Korea Development Bank owns 39.59 of the company after a debt-to-equity swap, followed by Woori Bank with 14.97 percent, Nonghyup with 10.07 percent, and Shinhan Bank with 5.92 percent. 

STX stock has stopped trading since last year because its debt overwhelmed equity capital. It would be formally kicked out of the main bourse if it cannot improve its balance sheet by the end of this month. Creditors want to select a preferred bidder as soon as possible to solve its liquidity problem. 

STX that had acted as the de facto holding company for STX Group has focused on trading business after the group went under. Despite its financial problem, the company posed appealing due to recovery in the global commodity market. STX is the top trader of zinc.

The Original Posted by By Chun Gyung-woon and Yoo Tae-yang/Maeil Business News