Hyundai Heavy Industries Bids For Doosan Infracore
30 September 2020
Hyundai Heavy Industries Holdings Co., and South Korea-based MBK Partners have submitted non-binding bids for a controlling stake in Doosan Infracore Co., valued at up to $850 million, according to press reports from Korea,
Seoul-based Glenwood Private Equity also bid by the Sept. 28 deadline for a 36% stake in the construction equipment unit of Doosan Group.
Hyundai Heavy said in a regulatory filing that it has handed in a preliminary bid for Doosan Infracore. Hydundai formed a consortium with financial investor KDB Investment, a unit of the state-run Korea Development Bank, to bid for the machinery maker, sources said.
Doosan Group is offering a 36% share in Infracore as part of its restructuring efforts for debt-ridden Doosan Heavy Industries & Construction Co. The share owned by Doosan Heavy Industries is estimated to be worth $682 million to $852 million.
Any potential sale does not include Doosan Bobcat, reports indicate. It is thought likely that Doosan Infracore will be spun off as a holding company with the operating company and Bobcat as separate units. Doosan acquired Bobcat from Ingersoll Rand in 2007 for $4.9 billion.
Doosan Group initiated the sales process for Doosan Infracore, the group’s construction equipment builder, in late July. The sale is part of Doosan Group’s efforts to keep Doosan Heavy Industries & Construction afloat. The power plant builder Doosan Heavy took a heavy hit when the government announced plans to depart from nuclear and coal power which had been the core business for the company.