Moa Construction Co Ltd has been selected as the preferred buyer for Doosan Heavy Industries & Construction’s golf resort Club Mow Country Club, sources said on June 29.
The purchase price is a record 185 billion won ($154.2 million), which is much higher than the expected value of between 140 billion won and 160 billion won. The two sides will likely sign an agreement in July, with the deal expected to be wrapped up by the end of August.
The sale would bring some respite to Doosan Group which is struggling to sell its businesses and assets to address its cash issues. Deloitte Anjin LLC helped the South Korean conglomerate, which hopes for a speedy sale of Club Mow CC, run the auction.
Despite the auction’s tight timeline, about 20 potential buyers made preliminary offers and several of them reportedly submitted final offers that exceeded 160 billion won, reflecting strong investor interest in the 27-hole golf course.
By contrast, Doosan Solus, one of the businesses to be offloaded by the conglomerate, is having difficulties finding a buyer. The sale process is being led by Samil PwC.
The company, which produces battery copper foils and organic light-emitting diode materials, had initially attracted attention from investors due to its growth potential amid the rise in the secondary battery market. But now interest has dwindled because of a valuation gap and the effects of the fallout from the Covid-19 lockdown.
Doosan Group is seeking a valuation of 1.4 trillion won, including debt for the business, which most of the potential investors consider expensive. Prospective buyers also raised concerns about the auction’s tight timeline, particularly in a situation where on-site due diligence on the target’s plant in Hungary is impossible with Covid-19 travel restrictions in place. (Reporting by Se-hun Jo)