Doosan Heavy sells controlling stake in engine-making unit to private funds

Lim Chang-won Reporter Posted : 2018-03-13 18:33 Updated : 2018-03-13 18:33
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[Aju New DB]

SEOUL -- A South Korean private equity consortium has acquired a controlling stake held by Doosan Heavy Industries & Construction in its sister firm which produces diesel engines for ships and power generation. 

Doosan Heavy, a Doosan group subsidiary, said in a regulatory filing on Tuesday that it has signed a deal to sell its 42.66 percent stake in Doosan Engine to a consortium of two private equity funds, Socius Advisors and Well to Sea Investment.

Doosan Heavy has sought the sale of non-core assets to improve its financial structure. Doosan Engine's investment sector would be separated and absorbed by Doosan Heavy, a key contractor in South Korea's nuclear power industry.

Doosan Heavy, which builds nuclear power plants, thermal power stations, turbines and generators and desalination plants, faces an uncertain business outlook due to President Moon Jae-in's policy of phasing out power plants using fossil fuel.