Hyundai Heavy Industries Holding Co. has submitted a bid to acquire a 36-percent ownership stake in Doosan Infracore, valued at about $850 million, according to Korean media reports. A Seoul-based investment banking firm Glenwood Private Equity has also submitted a bid. Hyundai is reported to be the strongest candidate for Doosan Infracore, the heavy construction equipment segment of the Doosan Group. Hyundai formed a consortium with KDP Investment, a unit of Korea Development Bank. Also participating in the bid was MBK Partners, a private equity firm that acquired Doosan Infracore’s machine tools business in 2016.
Doosan Group is offering the 36-percent stake in Infracore as part of restructuring Doosan Heavy Industries & Construction Co. because of its large debts. Doosan has about $3.6 billion in debts due before the end of this year, according to the reports.
A financial analyst at Daishin Securities said the disposal of Doosan Infracore would finalize Doosan Group’s restructuring measures.
According to Korean press reports, Doosan Heavy hopes that once free of debt it will transition into a green business through its gas turbine technology with the help of Doosan Fuel Cell’s hydrogen fuel cell business.
