The Supreme Court gave Doosan’s hand in a lawsuit against a financial investor by Doosan Infracore over a failure to sell its Chinese subsidiary.
The 3rd Division of the Supreme Court (Chief Judge Kim Jae-hyeong) broke the case with the intent of defeating the plaintiff in the appeal of a lawsuit against Doosan Infracore by investors including Mirae Asset Private Equity (PE) on the 14th. I sent it back.
The judge ruled that “It is difficult to say that Doosan Infracore has hindered the fulfillment of the conditions contrary to the sincerity of the manuscript only because it did not respond to the plaintiff’s request for data provision.”
Investors acquired a 20% stake in DICC for 380 billion won in anticipation of a public offering (IPO) of Doosan Infracore’s China subsidiary (DICC) in 2011. However, the IPO collapsed as earnings deteriorated due to the Chinese construction market downturn.
Accordingly, investors initiated a public sale by exercising’Drag Allong’, which can sell 100% of the stake along with the remaining 80% of the stake, but it was unsuccessful.
Investors filed a lawsuit, saying, “Doosan Infracore has affirmed its IPO, but did not make it and did not cooperate with the sale, and did not fulfill the promises between shareholders.”
Doosan Infracore argued that the IPO’s failure was an unavoidable result of the economic downturn and that investors’ arguments were different from the facts, saying that the sale proceeded normally.
The first trial ruled that the plaintiff lost, claiming that Doosan Infracore had no obligation to pay the trading price. However, the second trial admitted part of Doosan Infracore’s responsibility for the misappropriation of the public sale and ruled to pay 10 billion won out of the 14 billion won in the trading price requested by investors.
Reporter Eunji Lee