Sale managers Samil PwC and Korea Development Bank (KDB)’s mergers and acquisitions consulting team will hold the final round of bidding for Hanjin Heavy Industries & Construction in mid-December, industry sources said on Friday (November 27).

Shortlisted bidders are currently conducting detailed due diligence and making management presentations. A 63.44% stake in the shipbuilder held by KDB and other domestic financial institutions, and a 20.01% stake owned by Philippine financial institutions, including Rizal Commercial Banking Corporation, have been put up for sale.

Numerous potential buyers – a consortium of KDB Investment and Keistone Partners, a APC Private Equity-led consortium, a consortium of NH Private Equity and Opus Private Equity, SM Group and Korea Real Estate Investment & Trust (KOREIT) – submitted preliminary offers for Hanjin Heavy Industries on October 26. Competition is intense, with financial investors, construction companies and shipping companies joining the race.

Financial investors, including the strong consortium of KDB Investment and Keistone Partners and the consortium of NH PE and Opus PE, plan to finish the race, but they are unlikely to be flexible on the issue of price.

Shares of Hanjin Heavy Industries, listed on the main KOSPI bourse, have nearly doubled in six months, with its market capitalization standing in the mid-700 billion won ($631 million) range. However, potential buyers won’t offer a high price because market insiders widely see 400 to 500 billion won as a reasonable acquisition target.

SM Group is also unlikely to offer a high purchase price. “SM Group set a target price when joining the race,” said an industry source.

The bid from KOREIT, which has construction company Dongbu Corporation as its subsidiary, is attracting attention, as Hanjin Heavy Industries generates about half of its revenue from the construction business. (Reporting by Se-hun Jo)