Lotte close to buying Doosan`s liquor unit: sources

SEOUL, Dec. 21 (Yonhap) -- Doosan Corp., the flagship unit of South Korea's Doosan Group, has picked Lotte Group as a preferred bidder for its liquor unit, industry sources said Sunday.
Lotte has reportedly beaten out seven other foreign private equity funds bidding
for Doosan's liquor unit, which ranks as the nation's No. 2 maker of soju, or
Korean distilled liquor, with a 13-percent share in the market. Its sales
amounted to 341.9 billion won (US$265 million) last year with an operating profit
of 21.4 billion won.
"We have heard that Doosan has picked Lotte Group as a preferred bidder," a
source told Yonhap News Agency on condition of anonymity. "Lotte seemed to have
offered lower bidding prices for the business than its rivals but was picked as a
proffered negotiator as it received better scores in other categories."
Lotte reportedly proposed between 500 billion won and 600 billion won to purchase
the Doosan unit. Doosan declined to comment, saying that the final decision will
be announced on Monday. A Lotte Group spokesperson said he has not been notified
by Doosan regarding the decision.
The envisioned sale comes after Doosan sold its packaging unit, Doosan Techpack
BG, to private equity fund MBK Partners for 400 billion won last month to shore
up its balance sheet.
Doosan's business portfolio ranges from liquor and electronics to publishing and
apparel.
kokobj@yna.co.kr
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