[Asia Economy Reporter Hwang Yoon-joo] Hyundai Heavy Industries Holdings has participated in the preliminary bidding for the sale of Doosan Infracore.
On the 28th, Hyundai Heavy Industries Holdings announced that it submitted a preliminary bid proposal for the sale of Doosan Infracore as part of a consortium with financial investor (FI) Korea Development Bank Investment (KDBI).
Hyundai Heavy Industries Holdings had denied participation in the acquisition, responding to the Korea Exchange's inquiry last month by stating that it had "not considered the acquisition." However, it is reported that Hyundai Heavy Industries Holdings joined the bidding after learning that Doosan Infracore's subsidiary, Doosan Infracore China (DICC), is responsible for contingent liabilities amounting to approximately 700 billion KRW due to litigation.
Hyundai Heavy Industries Group expects that if it succeeds in acquiring Doosan Infracore, it will be able to create synergy effects in the global construction machinery market, including China, by merging it with Hyundai Construction Equipment or operating it separately.
Meanwhile, the sale target of Doosan Infracore is the 36.27% stake held by Doosan Heavy Industries, and the sale price is estimated to be between 800 billion and 1 trillion KRW.
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