Doosan Corporation Sells Neoplux to Shinhan Financial Group for 73 Billion KRW

Final Acquisition Amount Determined After Due Diligence and Purchase Price Adjustment

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Doosan Corporation has decided to sell the venture capital firm Neoplux to Shinhan Financial Group as part of its financial structure improvement (self-rescue plan).

Doosan Corporation announced on the 20th that it has signed a contract to sell 96.77% of its shares in Neoplux to Shinhan Financial Group. The sale price is tentatively 73 billion KRW, with the transaction closing date set for the 29th of next month, and the final acquisition amount to be confirmed after due diligence and adjustment of the purchase price.

Doosan Corporation stated, "The Neoplux shares were provided as collateral to creditors in relation to Doosan Heavy Industries & Construction, and the sale proceeds will initially be used as collateral."

On the 2nd, Doosan Heavy Industries & Construction sold the golf course Club Mow CC to the Hana Financial-Moa Miraedo consortium, and repaid creditor loans with the proceeds of 185 billion KRW, excluding some membership deposit refunds.

Doosan Heavy Industries & Construction has faced financial difficulties due to worsening management of Doosan Construction and the suspension of nuclear power projects. Accordingly, Doosan received a total of 3.6 trillion KRW in support from creditors on the condition of securing 3 trillion KRW in liquidity. To resolve management difficulties, Doosan Heavy Industries & Construction has implemented voluntary retirement, idle workforce furloughs, temporary suspension of employee welfare support, and partial salary returns by executives since early this year.

Doosan Group Chairman Jung-won Park also directly announced a management normalization plan in June, including a paid-in capital increase of about 1 trillion KRW and capital expansion within the year.

As part of securing liquidity, Doosan Corporation and Chairman Park, along with related parties, signed a memorandum of understanding (MOU) to sell shares of Doosan Solus to the private equity firm Skylake Investment, and put Doosan Construction and Doosan Infracore on the market.

The Doosan Group explained, "We will faithfully implement the financial structure improvement plan to promptly normalize Doosan Heavy Industries & Construction and repay the funds supported by creditors."

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