Doosan Heavy becomes largest shareholder of Doosan Fuel Cell

By Nam Kwang-sik

SEOUL, Nov. 26 (Yonhap) -- Cash-strapped Doosan Heavy Industries & Construction Co. has come to hold a 17.7 percent stake in its affiliate Doosan Fuel Cell Co., becoming the firm's largest shareholder, the fuel cell maker said Thursday.

In early September, 13 key shareholders, including Doosan Group's chairman Park Jeong-won, signed a deal to donate 12,763,557 common shares, or 23 percent of all of Doosan Fuel Cell's common shares, to Doosan Heavy for free.

The donated shares are valued at 606.3 billion won (US$549 million) on the basis of their Wednesday closing price, Doosan Fuel Cell said.

The share donation was meant to help Doosan Heavy tide over its cash shortages.

Doosan Heavy also plans to float its new shares worth 1.3 trillion won and sell them first to its existing shareholders and then to the public next month.

In March, Doosan Heavy received a cash injection of 3 trillion won from its creditors, including the Korea Development Bank (KDB), to brace itself for its short-term debts worth 4.2 trillion won, which should be paid within this year.

ksnam@yna.co.kr
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