(LEAD) Hyundai Heavy picked as preferred bidder for Doosan Infracore

(ATTN: RECASTS with comments by Doosan Heavy and HHIH in paras 3-4)
By Nam Kwang-sik

SEOUL, Dec. 10 (Yonhap) -- South Korea's power plant builder Doosan Heavy Industries & Construction Co. said Thursday that it has tapped a consortium led by Hyundai Heavy Industries Holdings Co. (HHIH) as the preferred bidder for the sale of its 35.4 percent stake in Doosan Infracore Co.

Doosan Heavy Industries & Construction said in an emailed statement it will conclude the deal with the consortium led by HHIH to sell its entire stake in Doosan Infracore. It did not provide a specific time frame.

"We will do our best to strike the final deal for the stake," HHIH said.

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, with ready-mixed concrete maker Eugene Group also submitting a bid.

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 Heavy Industries & Construction put its stake in Doosan Infracore for sale as part of its self-rescue plan.

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

Last March, Doosan Heavy Industries & Construction 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)