Creditors of Korea Express are likely to pick the preferred bidder next week to acquire the nation’s largest logistics firm in their efforts to wrap up the delayed deal as early as August.

According to the industry creditors led by Korea Development Bank concluded that they will end the bidding Monday and notified the three preliminary bidders POSCO, CJ Group and Lotte Group.

They intend to name the preferred bidder within three days, which puts the sale on track for completion in late August or early September.

The KDB is seeking to sell the 37.6% stake in the courier goliath held by financially troubled Kumho Asiana Group’s two main subsidiaries Daewoo Engineering and Construction and Asiana Airlines to finish restructuring the group. Daewoo owns 18.62% of the logistics firm, while Asiana holds an 18.98% interest.

Originally, KDB planned to finish the bidding by May 13 after allowing the three prospective buyers one month of due diligence on Korea Express on its way to pick a preferred bidder by May 16 and complete the stake transfer by the end of June.

The sale process hit a snag when the three prospective buyers and creditors were mixed on whether to sell Korea Express’ three affiliates Kumho Terminal, Aas Airport Service and Asiana Airport Development in a package or a piecemeal deal.

Creditors eventually reached an agreement with the three companies to sell the three subsidiaries separately in late May, with Asiana Airlines deciding to buy all three.

The three potential buyers are expected to participate in the auction despite speculation that Lotte might pull out of the final bidding war due to disappointment about the decision to sell the three affiliates separately.

Market watchers said that the bidding will be hard fought given that POSCO and Lotte are already major clients of Korea Express and CJ can rise as a powerhouse in the logistics sector as it would be merging with the group’s existing logistics.

The market estimates the transaction, once completed, would be the biggest takeover deal in the first half of 2011 and the stake that is up for sale is expected to fetch more than KRW 2 trillion.

(Sourced from Korea Times)