KDB Fund Closes on $875M Daewoo Stake

A private equity fund run by Korea Development Bank has completed its purchase of a 1 trillion won ($874.8 million) stake in Daewoo Engineering & Construction Co., Reuters reported.

(Reuters) – A private equity fund held by state-run Korea Development Bank completed its acquisition of new shares worth 1 trillion won ($874.8 million) in Daewoo Engineering & Construction Co Ltd (047040.KS), a KDB spokesman said on Wednesday.

KDB, the lead creditor for Kumho Asiana Group, bought 37.16 percent of Daewoo E&C for $1.9 billion, to help the restructuring its cash-strapped parent group. [

The purchase of new shares was made to improve the financial structure of the builder, Daewoo E&C said in a regulatory filing on Dec, 15. (Reporting by Ju-min Park; Editing by Chris Lewis)