Author: Tronserve admin
Wednesday 4th August 2021 10:41 AM
Doosan Owner Family, Doosan Corp. May Sell Stake In Doosan Solus To PEF
Private equity fund SkyLake Investment Co. has emerged as a potential buyer for battery copper foil and OLED materials maker Doosan Solus Co. after Doosan Corp. came under pressure to divest its holdings to join creditors in bailing out debt-laden Doosan Heavy Industries & Construction Co. (Doosan Heavy I&C).
Doosan Solus share fell 20.2 percent to close at 27,250 won ($22.53) in bargain-hunting Friday after it hit 52-week high on the previous day amid speculation of stake sale.
Doosan Corp. is said to be asking for around 600 billion won for its 51 percent stake plus management right in Doosan Solus in talks with SkyLake Investment. Doosan Corp., the holding entity, owns 17 percent in the materials company, and group chairman Park Jeong-won and family members another 44 percent. The estimated 61.27 percent combined stake values around 1 trillion won. The proceeds will be used to aid Doosan Heavy I&C.
Doosan Solus shares had been surging from Wednesday on the prospects of sale.
The option came up after state lenders Korea Development Bank and Export-Import Bank of Korea asked for pain-sharing from majority shareholders in return for 1 trillion won emergency loan to Doosan Heavy I&C.
SkyLake Investment is a PEF founded by former information and communication minister Chin Dae-je famous for developing the world’s first 16-mega DRAM when he was at Samsung Electronics.
Doosan Solus expanded to battery copper foil business in 2014 with the acquisition of Circuit Foil, Luxembourg-based copper foil manufacturer. It clinched a 100 billion won battery copper foil supply deal with a global battery maker on March 16.
For the final quarter ended December last year, Doosan Solus posted an operating profit of 10.2 billion won on a consolidated basis with sales of 70 billion won.