Hyundai Heavy Industries Bids For Doosan Infracore

By Mike Brezonick30 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.

 

MAGAZINES
NEWSLETTER
Delivered directly to your inbox, Diesel News Network newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
CONNECT WITH THE TEAM
Mike Brezonick VP, Power Division Tel: +1 262 754 4112 E-mail: mike.brezonick@khl.com
Alister Williams VP Sales Tel: +1 843 637 4127 E-mail: alister.williams@khl.com
CONNECT WITH SOCIAL MEDIA
Latest News
Dependable Emergency Vehicles, Volta Power Systems partner on lithium-ion APU
Toronto Fire Services trucks equipped with zero-emission APUs enable firefighters to reduce idling and improve safety without specialized charging infrastructure.
Cummins unveils large rise in quarter two revenues.
Company also outlines plans for its Filtration business with possibility of making it a stand-alone company
Palfinger attack highlights escalation in cyber crimes
What lessons does the Palfinger case have for the wider construction equipment industry?