Doosan Engineering & Construction, a subsidiary of Doosan Group, will be sold to a local private equity fund (PEF) operator.
If the sale is completed, Doosan Group is expected to finalize its financial structure improvement agreement with creditors, including the state-run Korea Development Bank, in June last year for the first time in a year and a half.
According to the investment bank (IB) industry on the 12th, Doosan Group has agreed to sell 53% of its stake in Doosan Engineering & Construction (99.99%) held by Doosan Heavy Industries & Construction to the Q Capital Consortium and sign a stock trading contract as early as next week.
The total sale amount is said to be around 250 billion won. The acquisition consortium will include the Eugene Asset Management-Shinyoung Securities PE division, led by private equity firm Q Capital.
The remaining 47% stake is reportedly held by Doosan Heavy Industries & Construction.
According to the construction industry, Doosan Engineering & Construction's cumulative operating profit in the third quarter was 54.3 billion won, more than doubling from 23.8 billion won a year earlier, and its performance in winning new orders also exceeds 1 trillion won.
Reporter Lee Ji-sun stockmk2020@gmail.com
