STX Group confirmed on Thursday that it has signed a deal to sell STX Finland to a consortium formed by the Finnish government and German shipbuilder Meyer Werft.
“The group expects the deal to spur its restructuring efforts to normalize its management,” a company official said, declining to comment on the price.
Under the deal, Meyer Werft will secure 70 percent of the yard, while the Finnish state goes home with the remaining 30 percent.
The Finnish government reportedly joined the deal to quell unemployment concerns in the Turku region of Finland where the STX shipyard is located.
STX Finland is a shipbuilding company that mainly designs and builds ferries and cruise ships. It was formed as a part of STX Europe that was established in 2008 when STX Group acquired a controlling share in Aker Yards, a Norway-based shipbuilding group.
The proceeds from the sale of STX Finland are expected to ease the cash shortage problems plaguing the embattled STX Group.
STX, once ranked among the nation’s top 10 conglomerates, collapsed last year in a liquidity crisis caused by a protracted slump in its core shipbuilding business.
At the time, the group’s key affiliates, including STX Offshore & Shipbuilding, STX Pan Ocean and STX Construction, asked for court protection.
Since then, Korea Development Bank, the group’s main creditor, has led the group’s restructuring efforts.
KDB’s outstanding loans to STX Group were estimated at 3.5 trillion won ($3.1 billion) as of this year. The lender has sought to sell STX Dalian Shipbuilding, the group’s unit in China, as well as the group’s assets in France and Finland.
By Seo Jee-yeon (
jyseo@heraldcorp.com)
