SEOUL, Nov. 24 (Yonhap) — Hyundai Heavy Industries Holdings Co. (HHIH) and ready-mixed concrete maker Eugene Group on Tuesday submitted their final bids for a 36 percent stake in Doosan Infracore Co., the largest local construction equipment maker here.
In a regulatory filing, the shipbuilder said that it has joined the final bid, with Eugene Group reportedly joining the final bid.
But GS Engineering & Construction Corp. and three local private equity funds — Glenwood PE, MBK Partners and Eastbridge Partners dropped its main bid for the stake.
In September, HHIH formed a consortium with Korea Development Bank Investment (KDBI), a unit of the state-run Korea Development Bank (KDB), to join preliminary bidding for the stake up for sale.
GS Engineering & Construction participated in the preliminary deal by forming a consortium with private equity fund Dominus Investment.
Three local private equity funds joined in the preliminary deal.
Doosan Infracore invited final bidders on the day, a development that would help stave off a liquidity crisis at its parent Doosan Group.
Doosan Infracore has been up for sale as part of its cash-strapped parent Doosan Heavy Industries & Construction Co.’s self-rescue plan.
The deal may fetch up to 1 trillion won (US$900 million), according to the companies.
Last March, Doosan Heavy obtained a cash injection of 3 trillion won from its creditors, including the KDB, to prepare itself for its short-term debts worth 4.2 trillion won, which should be paid within this year.