Doosan Group to Sell Shares in 4 Biz Units

The Doosan Group said yesterday that it will sell stakes worth 780.8 billion won (632.4 million U.S. dollars) in four units to raise liquidity. The four are Doosan DST, SRS Korea, Samhwa Crown & Closure, and Korea Aerospace Industries.

At Doosan Tower in central Seoul, the group also announced a plan to establish a company with a “special status” in line with its restructuring.

The stakes in the four units will be sold to DIP Holdings, a special purpose company established by Doosan Corp. which invested 280 billion won (226.8 million dollars), and Odin Holdings under a ratio of 51:49. Mirae Asset PEF and IMM Private Equity invested 270 billion won (218.7 million dollars) to establish Odin.

The conglomerate will maintain management rights in all of the units except for the aircraft company. Doosan Infracore International is expected to raise 630.8 billion won (510.9 million dollars) via the deals.

The group has signed agreements to sell defense equipment maker Doosan DST for 440 billion won (356.4 million dollars) and SRS Korea, which has run Burger King and KFC Korea, for 110 billion won (89.1 million dollars).

The conglomerate’s 20.54 percent stake in the aircraft company will be sold for 190 billion won (153.9 million dollars) and its share in Samhwa for 40.8 billion won (33 million dollars). DIP and Odin will acquire Doosan’s units by investing and borrowing money and reselling them five years later.

Doosan Corp. will invest 280 billion won (226.8 million dollars) to establish a special purpose company but 150 billion won (121.5 million dollars) will be returned to Doosan Corp. after selling its units. This means the amount of Doosan Corp.’s investment will reach 130 billion won (105.3 million dollars).

A group source said, “Doosan Infracore International’s acquisition of Bobcat has raised concerns over the Doosan Group’s liquidity. But our plan to sell several units will ease such concerns. The new restructuring measure will enable us to maintain our management rights and acquire cash at the same time.”

swon@donga.com