SEOUL, July 13 (Korea Bizwire) — South Korea’s cash-squeezed Doosan Group’s efforts to repay its debts have been on a roll, with its target to repay its debts worth 1 trillion won (US$800 million) by the end of the year appearing to be attainable.
The group, however, has confirmed only two deals to sell its affiliate Doosan Solus Co. and a golf course, but it has kept mum on other reports on its asset sales.
Between March and June, two state-run banks — the Korea Development Bank (KDB) and the Export-Import Bank of Korea (Eximbank) — injected a total of 3.6 trillion won(US$3 billion) into the group’s power plant builder Doosan Heavy Industries & Construction Co. to keep it afloat, as the group drew up a 3 trillion-won self-rescue plan.
In return for the financial support by its creditors, Park Jeong-won, chairman of the group, said in early June that the group will repay its debts of 1 trillion won by the end of the year by selling its assets to overcome its cash-shortage crisis.
Under its asset sales plan, the group said early this month that it chose private equity fund SkyLake Investment Co. as the preferred bidder for its battery copper foil maker Doosan Solus Co.
Doosan Corp., the parent of the group, holds a 17 percent stake in Doosan Solus, with main stockholders, including Chairman Park, having a combined 44 percent stake in the battery copper foil maker.
Doosan Heavy Industries & Construction Co. said Monday it has signed a deal to sell its golf course Club Mow to a consortium led by Hana Financial Investment Co. for 185 billion won after a two-week review of the books of the golf course by the consortium.
The group is also in talks with property developer Daewoo Development Co., an affiliate of Chinese Shanghai Fenghua Group, to sell its builder Doosan Engineering & Construction.
Shanghai Fenghua Group’s JL Global Co., a Chinese property developer, is the largest shareholder of Daewoo Development, holding a 56.6 percent stake.
Last month, Doosan Group also picked up Credit Suisse as sales manager to unload the stake in construction equipment maker Doosan Infracore Co.
As of the end of 2019, Doosan Group has 25 affiliates, including Doosan and power plant builder Doosan Heavy Industries & Construction Co., under its wing.