Korean confectionery deal wrapped up

A UBS Capital-led group is expected to sign a 480-billion won ($367.5 million) agreement for the assets of Haitai Confectionery on Wednesday, Haitai said. The deal includes five confectionery factories and a sales network, said Soh Sung-soo, a Haitai spokesman. In addition to assets, the group will shoulder 63.7 billion won in trade-related debt, Soh said. Haitai's main creditor, Chohung Bank, said on Monday lenders would arrange 395 billion won in loans for the buyers as part of the sale. Haitai Confectionery went bankrupt in late 1997 due to soured investments in electronics and construction, but has remained a major player with almost a quarter of the local confectionery market last year. The company lost 465.5 billion won in 2000 on sales of 771.2 billion won, hit by 1.08 trillion won of debt.The takeover, backed by firms including JP Morgan Capital and CVC Capital, marks one of Korea's largest asset sales to a foreign buyer this year.