SEOUL, Nov. 24 (Yonhap) — Hyundai Heavy Industries Holdings Co. (HHIH) on Tuesday submitted its final bid to buy 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.
Last late 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.
Ready-mixed concrete maker Eugene Group and three local private equity funds — Glenwood PE, MBK Partners and Eastbridge Partners — also reportedly submitted their bid to take over the construction equipment maker.
Another consortium created by GS Engineering & Construction Corp. and private equity fund Dominus Investment reportedly dropped its main bid for the stake.
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.
A total of six potential investors were shortlisted in a preliminary bidding in September. Two groups — a HHIH-KDBI consortium and another GS- Dominus Investment consortium — joined the preliminary bid on Sept. 28.
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.