Dongwon Group decided to sell non-core businesses of Dongbu Express, including Dongbu Bus and Dongbu Rent-a-car. This decision came in less than one month after Dongwon Group acquired the management control of Dongbu Express on February 1.
The move is part of the group's efforts to focus more on its core logistics business, as well as reduce the financial burden arising from its acquisition of Dongbu Express.
According to industry sources on February 15, Dongwon Industries is now in the process of selecting a lead manager for the sales of non-core businesses run by Dongbu Express, including Dongbu Bus, Dongbu Rent-a-car, and an 11.11-percent stake in Seoul Express Bus Terminal.
Dongbu Bus and Dongbu Rent-a-car are profitable businesses each generating annual sales of around 110 billion won. The book value of the 11.11-percent stake in Seoul Express Bus Terminal located in Seoul's busy commercial area in Gangnam, is estimated at around 130 billion won. Dongwon hopes to sell such assets through a package deal at a price of around 200 billion won.