Doosan signs MOU with Hyundai Heavy to sell Doosan Infracore… Main contract in January of next year

Input 2020.12.23 16:57 | Revision 2020.12.23 17:03

Doosan (000150)The Group is the preferred negotiator for the sale of Doosan Infracore shares. Hyundai Heavy Industries Holdings (267250)It was announced on the 23rd that it had signed a memorandum of understanding with the KDB Investment Consortium. The two sides agreed to sign a stock sales contract (SPA) by January 31 of next year.

Target for sale Doosan Heavy Industries & Construction (034020)Doosan Infracore owns 36.27% (5.5 million9366 shares). Doosan Infracore’s Doosan Bobcat (241560)Shares (51.05%) were excluded. After dividing Doosan Infracore into a business company and an investment company with Doosan Bobcat as a subsidiary, it plans to sell only the business company to the Hyundai Heavy Industries and KDB Investment Consortium.

Doosan Heavy Industries & Construction has decided to cover all the costs of the DICC litigation, which has been considered an obstacle to the sale. Doosan said, “The plan for Doosan Infracore’s financing will be given top priority, but Doosan will bear the share of the consortium of Hyundai Heavy Industries and KDB Investments.” Disclosed.

IMM, Mirae Asset Asset Management, and Hana Financial Investment Private Equity (PE), the FIs of Doosan Infracore and DICC, are in a lawsuit over the’payment of stock trading. The first referee raised the hand of Doosan Infracore, and the second referee raised the hand of FI in 2018. The lawsuit has been pending in the Supreme Court for the third year.

If Doosan Infracore loses the lawsuit, it has to repurchase 20% of DICC’s stake from the FI. Considering the delayed interest rate, it costs more than 800 billion won. Even if it wins, the FI’s right to claim the accompanying sale (drag along) remains. However, no matter what the outcome of the trial, Doosan will take responsibility.

It is reported that the Hyundai Heavy Industries and KDB Investment Consortium spent the mid-800 billion won in the sale price. However, the share of Hyundai Heavy Industries and KDB Investments has not been decided yet.

The transaction was decided to close within four months from the date of signing the stock trading contract. As planned, the transaction will be closed in the first half of next year. However, it can be extended by two months for the first time, and if both sides agree, it has decided to extend another two months.