AK Capital finalises Hanbo Steel acquisition
The deal between AK Capital and the creditor representatives
Korea Asset Management Corp. (KAMCO) has been finalised last week. The deal allows for the takeover of Korean steel maker Hanbo Iron and Steel Co. by AK Captial against $377 million.
The Korean origin joint venture AK Capital, including certain foreign investors as well, has agreed to complete the deposit payment to a 10% of the entire offer of $377 million after having received the approval from the bankruptcy court. This means of payment by AK Capital to pay an initial 20 billion won (approx. $17 million) within 90 days of the signing and the remainder within 120 days of the agreement. The sales conditions were agreed back in December 2002.
The new company named Hanbo
Korea will be transferred the assets of Hanbo Steel upon completion of the transaction. The company plans to focus on bar
production and the compact strip process at Hanbo, which owns three mills.
Hanbo,
Korea's second largest steel maker at that time, has been in bankruptcy administration since January 1997. A $ 5 million offer by POSCO was rejected by the government five years ago and a preliminary agreement was signed with AK Capital back in March 2002.