[THE INVESTOR] Doosan Heavy Industries & Construction, the nation’s top power equipment maker, said on Feb. 28 it has named a local consortium as the preferred bidder for a controlling stake in its marine engine-making unit.
Two Korean private equity funds -- Socius Advisors and Well to Sea Investment -- will purchase the 44.66 percent stake in Doosan Engine. The deal price is estimated to reach 300 billion won (US$280 million).
KOSPI-listed Doosan Engine turned to profits in 2016 amid the overall market recovery. The firm posted an operating profit of 13.4 billion won last year, a 218 percent jump from a year ago.
As part of financial restructuring, Doosan Group decided to sell the firm last year and named Credit Suisse as the lead manager.
Doosan and the consortium plan to complete the deal by May. Some stakes owned by other Doosan companies like Doosan Bobcat (10.6 percent) and Doosan Engineering & Construction (5.27 percent) will be transferred to Doosan Heavy Industries.
By Lee Ji-yoon (firstname.lastname@example.org)