Doosan Group is planning to sell all of its stake in material solutions affiliate Doosan Solus, intent to deliver an intensive self-rescue plan after receiving a massive bailout from state-run banks.
According to industry sources Sunday, Doosan Group is negotiating with private equity fund SkyLake Investment on handing over all of its 61 percent stake in battery copper foil and organic light-emitting diode materials maker Doosan Solus for 600 billion to 800 billion won ($495 million-$660 million) to secure liquidity to rescue debt-ridden Doosan Heavy Industries & Construction, following a 1 trillion-won loan from Korea Development Bank and the Export-Import Bank of Korea.
Doosan Group’s holding company Doosan Corp. owns 17 percent of Doosan Solus, while key shareholders and related individuals including Doosan Group Chairman Park Jeong-won hold 44 percent stake of the company, bringing the total to 61 percent.
Though Doosan Group was expected to give up its management rights of the company by selling 51 percent stake, it is considering selling off all of its 61 percent stake, according to industry sources.
Dosan Solus was established in October as a spinoff from Doosan Corp., recording consolidated sales of 70 billion won and operating profit of 10.2 billion won in the fourth quarter last year.
Despite Doosan Group’s painstaking measures to pay Doosan Heavy’s debts of 4.2 trillion won, additional self-rescue measures are expected to follow as it has to respond to corporate bonds worth 1.17 trillion won as well as commercial paper of 37.5 billion won and electronic short-term bonds worth 458.6 billion won in the second quarter.
By Kim Byung-wook (firstname.lastname@example.org