Hyundai Heavy signs MOU for Doosan Infracore takeover

SEOUL, Dec. 23 (Yonhap) -- Hyundai Heavy Industries Holdings Co. (HHIH) said Wednesday it has inked a memorandum of understanding (MOU) to buy Doosan Infracore Co., the country's largest construction equipment maker, from its cash-strapped parent, Doosan Heavy Industries & Construction Co.

On Dec. 10, a consortium led by HHIH was picked as the preferred bidder for the 35.4 percent stake held by South Korean power plant builder Doosan Heavy in Doosan Infracore.

HHIH will sign a formal deal in January next year, the group said in a regulatory filing.

Doosan Infracore has been up for sale as part of Doosan Heavy's self-rescue plan. The deal may fetch up to 1 trillion won (US$900 million), according to industry watchers.

South Korea's 15th-largest conglomerate Doosan Group has been seeking to sell its shares and assets to improve its financial structure and repay debts held by the flagship unit Doosan Heavy Industries & Construction Co. in return for a 3.6 trillion-won lifeline from state-run banks.

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