South Korea’s cash-strapped Doosan Group is making significant progress in its restructuring efforts, successfully offloading non-core assets to repay a 3.6 trillion ($3 billion) debt provided by state-backed lenders earlier this year.

Doosan Corp, the holding company of the conglomerate, inked an agreement to sell 52.93% of Doosan Solus to SkyLake Equity Partners for about 700 billion won, according to regulatory filing on September 4.

Doosan Corp entered into private negotiations with SkyLake over a sale of the copper foil maker in early 2019. However, it changed the sale process to a public auction earlier this year with several other investors showing interest in the company.

Bids for Doosan Solus were submitted in June. But the auction proved to be a failure as it attracted far fewer bidders than anticipated due to a valuation gap. Doosan Corp resumed negotiations with SkyLake in July and the deal was signed two months later.

Apart from Doosan Solus, Doosan Corp also agreed on September 4 to sell hydraulic components division Doosan Corporation Mottrol to a private equity consortium of Socius Advisors and Well to Sea Investment for 453 billion won.

Doosan Corp chose the consortium over Morgan Stanley Private Equity, which reportedly submitted a higher bid for the division, because it wanted to close the transaction as soon as possible. There had been concerns about a foreign investor’s acquisition of Doosan Corporation Mottrol’s defense business, which requires a regulatory approval from the government. The deal is expected to be completed in December.

Doosan Heavy Industries & Construction’s golf resort Club Mow Country Club was sold to Moa Construction for a record 185 billion won in early August. In the same month Doosan Corp also completed the sale of its 96.77% shareholding in Neoplux, the investment arm of the conglomerate, to Shinhan Financial Group for 73 billion won.

Meanwhile, the first round of bidding for Doosan Infracore is expected to be held later this month. Doosan Heavy Industries & Construction is also said to be in talks with Daewoo Engineering & Construction to sell its subsidiary Doosan Engineering & Construction. (Reporting by Byung-yoon Kim)