South Korean merger-and-acquisition specialist KH Investment — owner of K Shipbuilding (the former STX Offshore & Shipbuilding) — has been named as the preferred bidder to acquire Daehan Shipbuilding.

Shipbuilding sources said KH Investment has offered state-owned Korea Development Bank (KDB) about $200m for its stake, which is said to be about 90%. Creditors and commercial banks hold the remaining shares.

Managers at K Shipbuilding and Daehan said they had not been told of the decision.