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Samsung creditors approve Renault takeover of South Korean auto firm |
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April 26, 2000
SEOUL, APR 25 (AP) - The creditors of Samsung Motors Inc. on Tuesday approved French carmaker Renault's takeover of the bankrupt South Korean automative firm, the chief creditor said.
Samsung's 16 creditor banks convened a meeting in Seoul after Renault reached a tentative agreement to take over Samsung in negotiations in Paris this past weekend.
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Analysts had regarded ratification as certain because three government-controlled creditors - Hanvit, Korea Development and Seoul Guarantee Insurance Co, which hold more than 75 percent of voting rights - had already expressed support for the deal.
Hanvit confirmed approval of the 620 billion won (dlrs 562 million) deal, which will give Renault a 70.1 percent stake in Samsung Motors.
The deal makes Renault the first foreign car producer and operator in the South Korean market, which so far has been controlled by three domestic auto firms - Hyundai, Kia and Daewoo.
Hyundai Motor Co. took over its closest competitor Kia Motor Co. last year, which gave it a 75 percent share of the local market. The third local carmaker, Daewoo, is in deep financial trouble and is on the market for sale.
General Motors Corp. and Ford Motor Co. are the front-runners in international bidding called for Daewoo. The successful bidder will be chosen by June.
Samsung, with a capacity of 240,000 units a year, has a technical tie-up with Nissan Motors Co. of Japan, in which Renault is the controlling shareholder.
Renault's acquisition of Samsung gives it an access to the lucrative South Korean market and help expand its foothold in Asia, one of the world's fastest growing markets. |
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