Hanbo Iron and Steel sale likely to be concluded soon
The definitive agreement between the creditors of Hanbo Iron and Steel and the consortium led by AK Capital has been concluded. The sale is expected to complete early next month at $ 377 million, an amount lower than the initally agreed upon $410 million, after receipt of necessary approvals from the court and finalisation of the contract details. The sale was previously agreed by the Korean Asset Management Corporation (KAMCO) and AK Steel in March 2002, at an amount of $410 million subject to an adjustment of plus/minus 9.3% upon completion of due diligence. AK Capital, whose largest participant is Chungwo Industrial Co. was selected as the most successful bidder last year, at the international bidding for Hanbo last year. Hanbo has been searching for a purchaser since more than five years, right after going bankrupt.