South Korean conglomerate Hanwha Group’s planned buyout of Daewoo Shipbuilding & Marine Engineering from its lead shareholder Korea Development Bank (KDB) has the potential to transform the yard into a more professional and profitable enterprise, market players said this week.

Following Monday’s announcement by KDB of the proposed sale of its controlling shareholding in DSME to Hanwha, reactions from the shipbuilding industry appeared positive.

Those watching the buyout moves pointed to what one described as DSME’s “terrible” debt to equity gearing, which has been in the range of 600% to 700%.