Go to Contents Go to Navigation

Hyundai Heavy picked as preferred bidder for Doosan Infracore

All News 17:12 December 10, 2020

By Nam Kwang-sik

SEOUL, Dec. 10 (Yonhap) -- South Korea's No. 1 construction equipment maker Doosan Infracore Co. said on Thursday that its creditors led by Korea Development Bank (KDB) have tapped a consortium led by Hyundai Heavy Industries Holdings Co. (HHIH) as the preferred bidder for a 36 percent stake up for sale.

HHIH, the holding firm of the country's largest shipbuilder, has the country's second-largest construction equipment maker Hyundai Construction Equipment Co. under its wing.

On Nov. 24, the consortium of Korea Development Bank Investment (KDBI), a unit of the state-run KDB, and HHIH submitted its final bid for the stake held by Doosan Heavy Industries & Construction Co., with ready-mixed concrete maker Eugene Group also submitting a bid.

This photo shows the logo of Doosan Group, to which Doosan Heavy Industries & Construction Co. belongs, in central Seoul. (Yonhap)

GS Engineering & Construction Corp. and three local private equity funds -- Glenwood PE, MBK Partners and Eastbridge Partners -- joined in the preliminary bid for the stake but dropped their final bid.

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

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

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.

ksnam@yna.co.kr
(END)

HOME TOP
Send Feedback
How can we improve?
Thanks for your feedback!