Daewoo Motor Says Artec Buys 26 Percent Share

09/10/96

Reuters has reported that Korea's Daewoo Motor Company reported that Malaysia's Artec Ltd bought a 26 percent (non-controlling) stake in the company. The announcement corrected an earlier Daewoo statement that said Artec was a subsidiary of the Union Bank of Switzerland. Daewoo said it had no information about how Artec had raised its funds, but it put up $200 million to buy the third largest stake in South Korea's third largest automaker.

Daewoo says Artec does not have any management rights in Daewoo and that its investors hope to realize a profit from their 18.45 million shares when the company goes public. Earlier this year Daewoo Motor chairman Kim Tae-gou said it would make an initial public offering in 1998 or 1999.

Paul Dever -- The Auto Channel