Hyundai Heavy Industries Holdings said it has joined the preliminary bidding for Doosan Infracore. The deal is potentially worth over $800 million.
According to Korea Biz Wire, Hyundai Heavy Industries Holdings formed a consortium with Korea Development Bank Investment, a unit of state-run Korea Development Bank. Credit Suisse, the lead manager for the Doosan Infracore stake sale, has invited preliminary bids for the 36 percent stake in Doosan Infracore.
With Doosan Infracore, Hyundai Heavy’s global share in construction equipment would rise to 4.5 percent, overtaking Hitachi to come in seventh, according to a report in Nikkei Asia. This could strengthen its position against fast-growing Chinese rivals, like Sany Heavy Industry.
Hyundai Heavy Industries Holdings denied reports that it pushed for the purchase of the take of Doosan Infracore due to woes over possible debts of a subsidiary of the No. 1 local construction equipment manufacturer. However, Hyundai Heavy is reported to have opted to join in the bidding as Doosan Group vowed to repay any additional debts owed by Doosan Infracore China Co., it’s Chinese unit.
Source: Korea Biz Wire & Nikkei Asia
