Doosan Infracore Acquires Remaining DICC Shares for 305 Billion KRW

[Asia Economy Reporter Hyungsoo Park] Doosan Infracore announced on the 18th that it will acquire a 20% stake in Doosan Infracore China (DICC) for 305 billion KRW. The company explained that this decision was made to secure stable management rights through the resolution of disputes with financial investors (FI) and the recovery of shares.

Doosan Group is currently engaged in a lawsuit with the financial investors (FI) of Doosan Infracore China over the payment of the purchase price. The first-instance court ruled in favor of Doosan Group, but the appellate court ruled in favor of the FI. In January, the Supreme Court remanded the case.

Previously, the FI consortium invested a total of 380 billion KRW in DICC in 2011 and secured a 20% stake. At the time of investment, Doosan Infracore promised to list DICC on the Chinese stock market within three years. If this was difficult to fulfill, call options and drag-along rights were included in the contract.

The listing failed, and the FI consortium attempted a third-party sale through drag-along rights. When the sale process collapsed, the FI side cited Doosan Group's insincere attitude as the cause of the failed transaction.

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