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(LEAD) Hyundai Heavy submits final bid for Doosan Infracore

All News 16:23 November 24, 2020

(ATTN: RECASTS headline, lead; UPDATES with more details throughout)
By Nam Kwang-sik

SEOUL, Nov. 24 (Yonhap) -- Hyundai Heavy Industries Holdings Co. (HHIH) on Tuesday submitted its final bid to buy a 36 percent stake in Doosan Infracore Co., the largest local construction equipment maker here.

In a regulatory filing, the shipbuilder said that it has joined the final bid.

Last late September, HHIH formed a consortium with Korea Development Bank Investment (KDBI), a unit of the state-run Korea Development Bank (KDB), to join preliminary bidding for the stake up for sale.

Ready-mixed concrete maker Eugene Group and three local private equity funds -- Glenwood PE, MBK Partners and Eastbridge Partners -- also reportedly submitted their bid to take over the construction equipment maker.

Another consortium created by GS Engineering & Construction Corp. and private equity fund Dominus Investment reportedly dropped its main bid for the stake.

Doosan Infracore invited final bidders on the day, a development that would help stave off a liquidity crisis at its parent Doosan Group.

This photo, provided by Doosan Infracore Co., a construction equipment arm of South Korea's Doosan Group, on July 20, 2020, shows an excavator by the company. (PHOTO NOT FOR SALE) (Yonhap)

Doosan Infracore has been up for sale as part of its cash-strapped parent Doosan Heavy Industries & Construction Co.'s self-rescue plan.

The deal may fetch up to 1 trillion won (US$900 million), according to the companies.

A total of six potential investors were shortlisted in a preliminary bidding in September. Two groups -- a HHIH-KDBI consortium and another GS- Dominus Investment consortium -- joined the preliminary bid on Sept. 28.

Last March, Doosan Heavy obtained a cash injection of 3 trillion won from its creditors, including the KDB, to prepare itself for its short-term debts worth 4.2 trillion won, which should be paid within this year.


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