Sale of Ssangyong Information and Communications fails

Ssangyong Cement Industrial announced Tuesday that it failed to sell Ssangyong Information and Communications, a move that was designed to improved the parent firms` financial status. As a result, Ssangyong Cement Industrial is expected to suffer difficulties because its liquidation was postponed last November on condition that it sell Ssangyong Information and Communications.

Still, its creditors adjusted the debt by helping the company issue 1.4 trillion won in convertible bonds (CBs) and Japan`s Pacific Cement has acquired 300 billion won worth of CBs. So the company is unlikely to face any immediate financial trouble.

Ssangyong Cement Industrial has been negotiating with Carlyle Group of the United States since last January for the sale of Ssangyong Information and Communications, but it failed to reach an agreement on the sale, the company posted on the Korea Stock Exchange. Ssangyong Cement Industrial said that it would negotiate with other potential buyers and would announce terms and conditions of a sale as soon as they are available by Oct. 16.

Hong Chan-Sun hcs@donga.com