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Hyundai Heavy held talks with Daewoo Shipbuilding to buy stake - official

FILE PHOTO: Giant cranes of Hyundai Heavy Industries are seen in Ulsan, South Korea, May 29, 2018. REUTERS/Kim Hong-Ji

SEOUL (Reuters) - South Korean shipbuilding giant, Hyundai Heavy Industries Group, is interested in buying a stake in rival Daewoo Shipbuilding & Marine Engineering, a Hyundai official told Reuters on Wednesday.

State-funded Korea Development Bank (KDB) holds a 55.7 percent stake worth 2.16 trillion won (1.48 billion pounds) as of Wednesday's closing price in Daewoo.

"Hyundai Heavy held talks to buy the Daewoo stake," the official said, without elaborating further.

Hyundai Heavy Industries Group is the world's biggest shipbuilder, followed by Daewoo.

South Korea's online media Yonhap Infomax said Hyundai Heavy submitted a letter of intent to the KDB to buy a stake in Daewoo, citing the government.

A KDB spokesman declined to comment.

Hyundai Heavy Industries Holdings said on Monday it planned to sell part of its stake in refiner Hyundai Oilbank to Saudi Aramco for as much as 1.8 trillion won.



(Reporting by Hyunjoo Jin; Editing by Muralikumar Anantharaman and David Evans)