by Kyle Molyneux | Wed 24 Jun 2020
Doosan Infracore to be sold?
Doosan Group is reportedly considering selling its stake in Doosan Infracore, the South Korean construction equipment and engine manufacturer, to help repay emergency loans that bailed out its flagship Doosan Heavy Industries & Construction division earlier this year. This financial restructuring should allow Doosan to retain its majority stake in the strong-performing Doosan Bobcat company.
Currently, Doosan Heavy has a 36% stake in Doosan Infracore, which in turn has 51% majority control of Doosan Bobcat. Doosan Group’s stake in Doosan Infracore is thought to be worth around 800 billion won (£533 million). Loans provided by South Korean state-owned banks amount to 3.6 trillion won (£2.4 billion) and a large chunk of it must be repaid by the end of 2020.
Doosan Heavy Industries & Construction was founded in 1962. Doosan Infracore (previously known as Daewoo Heavy Industries & Machinery) was established in 2005 and took US-based company Bobcat under its wing in 2007.
UPDATE - Hyundai rumoured to be interested in acquiring Doosan Infracore. Find out more here.
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