[Asia Economy Reporter Moon Jiwon] Doosan Group is seriously considering selling Doosan Construction to Daewoo Industrial Development as part of its management normalization efforts.
According to financial sources on the 9th, Doosan Group recently decided to grant Daewoo Industrial Development the status of preferred negotiator.
The sale price is expected to be around 300 to 400 billion KRW. Daewoo Industrial Development was established in December 2011 by spinning off the construction business division from Daewoo Motor Sales.
Its major shareholder is China's Fenghua Group, and it is known domestically for its apartment brand 'iaan'.
Previously, the sale of Doosan Construction had been mentioned as a measure to normalize Doosan Heavy Industries' management. Doosan Construction received substantial support from Doosan Heavy Industries due to the large-scale unsold inventory crisis at Ilsan Doosan We've the Zenith, and this support is considered a factor that made Doosan Heavy Industries' situation difficult.
Although Doosan Construction holds the 'Doosan We've' brand, many predicted there would not be many buyers considering its competitiveness and assets. Daewoo Industrial Development is reportedly planning to acquire Doosan Construction to expand its business areas.
Doosan Construction was delisted after being absorbed into Doosan Heavy Industries in March. On the 16th of last month, it underwent a physical division, transferring some assets, liabilities, and contracts to the newly established company Valuegross.
Doosan Group is currently discussing the sale with Daewoo Industrial Development but states that nothing has been finalized yet.
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