'Restructuring Model Student' Doosan... Possibility of Raising 2 Trillion Won Within the Year

Self-Rescue Plan to Secure Over 3 Trillion Won Within 3 Years 'Sails in Favorable Winds'
Doosan Construction Negotiates Sale with Daewoo Industrial Development... Amount Over 300 Billion Won

[Asia Economy Reporter Ki-min Lee] Doosan Group, regarded as a model student in corporate restructuring within the business community, is accelerating its self-help plan to secure more than 3 trillion won within three years. Following the completion of the sale of the golf course Club Mow CC and Doosan Solus, Doosan Construction has also been designated as a sale target and is currently under negotiation. Including the 1 trillion won capital increase planned for the second half of the year by Doosan Heavy Industries, it is expected that more than 2 trillion won in liquidity will be secured this year.

According to the business and financial sectors on the 10th, Doosan Group recently completed negotiations for the sale of the golf course Club Mow CC and shares of Doosan Solus, and has granted priority negotiation rights for Doosan Construction to Daewoo Industrial Development. The market estimates the sale price of Doosan Construction to be over 300 billion won. Doosan Construction was delisted after being merged into Doosan Heavy Industries in March due to business conditions and management circumstances. When the sale became difficult, Doosan Construction carried out a physical division on the 16th of last month, transferring some assets, liabilities, and contracts to a newly established company, Valuegross. After the division, Doosan Construction holds assets of 2.23 trillion won and liabilities of 1.78 trillion won, while Valuegross holds assets of 250 billion won and liabilities of 80 billion won.

Based on recent trends, Doosan Group is expected to secure liquidity worth about 1.5 trillion won this year through asset and affiliate sales. First, last month, Doosan Group sold the golf course Club Mow CC owned by Doosan Heavy Industries to a consortium of Hana Financial Group and Moa Miraedo. The bid price submitted by the Hana-Moa Miraedo consortium to Doosan Heavy Industries for Club Mow CC is reported to be about 180 billion won. Subsequently, Doosan Solus, a battery foil company, with 61% of its shares held by Doosan Corporation (17%) and special related parties including Chairman Park Jeong-won of Doosan Group (44%), signed a memorandum of understanding (MOU) on the 7th to sell the shares to the private equity fund manager Skylake Investment. Although the sale price of Doosan Solus shares was not disclosed, the industry estimates it to be around 700 billion won.

Additionally, Doosan Group is in the final stages of negotiations with Maston Investment Management for the sale of Doosan Tower. The sale price being negotiated is reported to be between 700 billion and 800 billion won.

Including the 1 trillion won capital increase planned by Doosan Heavy Industries in the second half of the year, more than 2 trillion won can be secured within the year. This is more than double the initially planned 1 trillion won within the year.

However, it is expected to be difficult to immediately cover the 3 trillion won liquidity gap. Doosan Group has appointed Credit Suisse as the lead manager for the sale of its prime asset, Doosan Infracore, but it is reported that they do not intend to sell it at a low price.

The market speculates that selling Doosan Infracore could bring in about 800 billion won, but immediate sale could risk a decline in overall performance.

Excluding its subsidiary Doosan Bobcat, Doosan Infracore recorded consolidated sales of 3.7265 trillion won and operating profit of 363.4 billion won last year. Despite the impact of the COVID-19 pandemic this year, the Chinese construction machinery market has rapidly recovered since April, and it is expected to record performance similar to previous years.

A business community official said, "The pace of Doosan Group's implementation of its self-help plan is rapidly accelerating," but added, "Since three years have been given, it will be difficult to immediately sell Doosan Infracore as stable sales must be maintained until Doosan Heavy Industries' gas turbine business is established."

This content was produced with the assistance of AI translation services.