KOSE seeks to acquire marine engine maker STX Heavy Industries

KOSE LNG carrier [Source : KOSE]

Korea Shipbuilding & Offshore Engineering (KSOE) is seeking to acquire another Korean marine engine manufacturer STX Heavy Industries to diversify its portfolio of marine engine products and enhance synergy among shipbuilding affiliates.

KSOE submitted a bid at the preliminary tender held on Wednesday for a 47.8 percent stake in STX Heavy Industries put up for sale by private equity firm Pinetree Partners, according to sources in the investment banking industry. An unnamed foreign company is said to also have made a bid.

KOSE is an interim holding company responsible for the shipbuilding business in Hyundai Heavy Industries Group. It oversees shipbuilding operations of Hyundai Heavy Industries, Hyundai Samho Heavy Industries, and Hyundai Mipo Dockyard.

The shipbuilding giant is seeking to acquire STX Heavy Industries to actively respond to the growing demand for marine engines as well as create a synergy with its existing business units, according a KSOE official.

STX Heavy Industries manufactures engines for ships, from diesel engine and liquified propane gas (LPG) engine to liquified natural gas (LNG) engine, which is in growing demand under the world‘s green energy movement.

The marine engine firm earned 3.1 billion won ($2.4 million) in operating income and 132.1 billion won in sales this year through September.

On Friday, KOSE shares rose 0.41 percent to 73,300 won in the early afternoon. Those of STX Heavy Industries jumped 23.4 percent to 7,110 won.