Three years after Kumho Asiana Group struck a $5 billion acquisition deal for the biggest South Korean builder Daewoo Engineering and Construction, the company has been put up for sale – largely because of Kumho being pressurized to address investors’ concerns its liquidity.

While Kumho holds a 33 percent stake in Daewoo Engineering, with management control; the financial investors hold an added 39 percent; and the remaining are free-floating shares.

Announcing the Daewoo Engineering sale move on Sunday, Kumho said it would discuss with its creditors regarding the sale of a controlling stake – the size of which has to be decided - in the company. The group is obviously looking at a stake-sale size that would “minimize the group’s losses and reduce a buyer’s burden.”

As per the Kumho Asiana group’s decision of the builder’s sale, it is considering either a tender offer or a sale to a private equity fund of its chief creditor - the state-managed Korea Development Bank (KDB).

The group added that it has been, of late, involved in talks with plural investors within the country and abroad; however, a final agreement could not be reached as the proposal may increase the group’s debt.

Analysts opine that in the current financial scenario, Kumho may find it extremely difficult to sell off Daewoo Engineering, more so due to the slump in the construction sectors!