Final bids for Korea Aerospace $1 billion stake postponed to December

SEOUL Wed Nov 28, 2012 2:10am GMT

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SEOUL (Reuters) - The deadline for due diligence and binding bids to acquire an estimated $1.1 billion stake in Korea Aerospace Industries (KAI) (047810.KS) has been postponed into December, KAI's largest shareholder said Wednesday.

Korea Finance Corp said in a statement that due diligence for a total 41.75 percent stake in the aircraft maker will be extended until December 7, and final bids will be accepted until December 17.

KAI shares were down 3.1 percent as of 8.50 p.m. ET on Tuesday, underperfoming the wider market .KS11.

Hyundai Heavy Industries (009540.KS) and Korean Air Lines (003490.KS) submitted preliminary bids for the estimated 1.2 trillion won ($1.1 billion) stake in September.

Korea Finance Corp said that Hyundai Heavy and Korean Air requested an extension of the due diligence period before the original final bid date of November 30.

Officials and advisors for Hyundai Heavy and Korean Air have experienced difficulties accessing KAI's files for due diligence due to protests by KAI's labor union, officials at Hyundai Heavy and KAI's union previously told Reuters.

The deal, if successful, would be one of the few South Korean stake sales expected to fetch more than 1 trillion won this year.

Credit Suisse (CSGN.VX) and Korea Development Bank are the lead managers for the sale.

(Reporting by Joyce Lee; Editing by Eric Meijer)

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