Disposal of Doosan Solus Shares, Sale of Motrol
Completion of Doosan Heavy Industries Capital Injection through Free and Paid Stock Issuance
[Asia Economy Reporter Minwoo Lee] As the restructuring process led by Doosan Group enters its final stage, various uncertainties are expected to arise.
On the 6th, Daishin Securities maintained its investment opinion on Doosan as 'Market Perform' with a target price of 45,000 KRW, while emphasizing a positive outlook going forward. This follows Doosan Group's major announcements on the 4th, including ▲disposal of Doosan Solus shares ▲sale of Doosan Motrol business division ▲free transfer of Doosan Fuel Cell shares to Doosan Heavy Industries & Construction ▲a paid-in capital increase of approximately 1.3 trillion KRW by Doosan Heavy Industries & Construction. Yang Ji-hwan, a researcher at Daishin Securities, stated, "In addition, the sales of Club Mow CC and Doosan Tower are also in the final stages," and added, "If the sale of Doosan Infracore is completed by the end of the year, Doosan Group's restructuring will be finalized."
Doosan secured about 690 billion KRW through Doosan Solus and the Motrol business division. They agreed to sell an 18.05% stake in Doosan Solus, which they held, to Skylake Investment for 238.2 billion KRW. After the share disposal, Doosan's stake in Doosan Solus decreased to 2.84%. Additionally, the Motrol business division was spun off to establish Motrol, and 100% of this company's shares were agreed to be sold to the Socious-Welltouch Consortium for 453 billion KRW.
Furthermore, upon completion of the Doosan Tower sale, approximately 1.1 trillion KRW is expected to be secured. Of these funds, about 580 billion KRW will be used to participate in Doosan Heavy Industries & Construction's paid-in capital increase, and the remainder is expected to be used for debt repayment. Once the share sales, capital increase participation, and debt repayments are completed, Doosan's net borrowings are analyzed to decrease to about 900 billion KRW.
Doosan Heavy Industries & Construction's financial risk is also expected to be significantly alleviated. Researcher Yang explained, "Doosan Heavy Industries & Construction will receive Doosan Fuel Cell shares through a free capital increase, and combined with the paid-in capital increase and the sale of Club Mow CC, it will secure approximately 1.4 to 1.5 trillion KRW in cash and a 17.77% stake in Doosan Fuel Cell (worth about 574.4 billion KRW)." He added, "If the share sale of Doosan Infracore is successfully completed, a total capital expansion effect of over 3 trillion KRW is expected."
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