Korean news organizations are announcing that a consortium led by South Korean shipbuilding giant Hyundai Heavy Industries Group (HHIG) is close to securing a 36.07% stake in compatriot construction firm Doosan Infracore, having been selected as the preferred bidder.
Infracore is the heavy construction division of the Seoul-headquartered Doosan group and the stake on offer – Doosan’s sole interest in the company – is said to be valued at around €565 million or $686.8 US Dollars.
The group’s decision to sell off its stake in Infracore has been forced by its level of debt, now said to be in the region of €3 billion.
HHIG’s partner in the investment bid is a division of the state-run Korea Development Bank. Doosan Bobcat – which accounted for 57% of Infracore’s 2019 revenues – is not included in the deal. Nevertheless, should the bid be successful, Hyundai – with Doosan Infracore, combined with its own Hyundai Construction Equipment – will become a top 15 player in the global construction equipment market.
The companies are planning to share a share purchase agreement before the end of the year.
