Doosan Infracore invites final bidders
SEOUL, South Korean construction equipment maker Doosan Infracore Co. invited final bidders Tuesday, a development that would help stave off a liquidity crisis at its parent Doosan Group, industry sources said.
Potential bidders will compete to acquire the 36 percent stake in Doosan Infracore, they said.
Doosan Infracore has been up for sale as part of its cash-strapped parent Doosan Heavy Industries & Construction Co.’s self-rescue plan.
The deal may fetch up to 1 trillion won (US$900 million), according to them.
A total of six potential investors were shortlisted in a preliminary bidding in September.
A consortium of GS Engineering & Construction Corp. and private equity fund Dominus Investment, as well as another one led by Hyundai Heavy Industries Holdings Co. and Korea Development Bank Investment, a unit of the state-run Korea Development Bank, joined in the preliminary bids on Sept. 28.
Ready-mixed concrete maker Eugene Group and three local private equity funds — Glenwood PE, MBK Partners and Eastbridge Partners — also were reportedly included on the shortlist of preliminary bidders.
Last March, Doosan Heavy obtained a cash injection of 3 trillion won from its creditors, including KDB, to prepare itself for its short-term debts worth 4.2 trillion won, which should be paid within this year.
Source: Yonhap News Agency