Hyundai Heavy Industries Group has been selected as the preferred bidder to acquire a controlling stake in Doosan Infracore, Doosan Group’s engineering unit, HHI Group confirmed Friday.
A consortium of Hyundai Heavy Industries Holdings, HHI Group‘s holdings company, and private equity firm KDB Investment beat out local construction materials firm Eugene Corp. in the takeover race. It offered about 800 billion won ($735 million) for a 35.41 percent stake in the firm.
The equity sale is part of Doosan group’s restructuring after its main business Doosan Heavy Industries & Construction faced financial difficulties amid the nation’s push for a nuclear-free energy policy.
Doosan received 3.6 trillion won from creditors such as the Korea Development Bank and Export-Import Bank, and sold Club Mow CC golf resort for 185 billion won, copper foil maker Doosan Solus for 698 billion won and hydraulic business firm Mottrol for 453 billion won.
Hyundai Heavy Industries Group, which has Hyundai Construction Equipment as a subsidiary, will leap to become the world‘s top 10 construction equipment company once it acquires Doosan Infracore.
By Shin Ji-hye (firstname.lastname@example.org)