ID :
40143
Mon, 01/12/2009 - 10:05
Auther :
Shortlink :
http://m.oananews.org//node/40143
The shortlink copeid
Doosan hastens transformation into holding firm
SEOUL, Jan. 12 (Yonhap) -- South Korean conglomerate Doosan Group is selling its
non-core assets in an attempt to firm up its governance and hasten its
transformation into a holding company, industry sources said Monday.
Doosan's business portfolio ranges from food and beverage to heavy machinery and
power plants. It announced in 2006 that it would restructure parent company
Doosan Corp. into a holding firm before 2010.
Last week, Doosan sold its spirits-making unit for 503 billion won (US$369
million) to Lotte Chilsung. The company also sold its packaging unit, Doosan
Techpak, last month to a private equity fund for 400 billion won.
"With the sales of part of its assets, Doosan transformation into a holding
company structure is gathering steam due to reduced debts," said Chung Sung-hoon,
an analyst at Hyundai Securities.
Established at the end of the 19th century, Doosan is one of South Korea's oldest
family-owned conglomerates. The group announced a set of plans to turn into a
holding company after it was rocked by a slush fund scandal and a family battle
for control in 2005.
Doosan has been trying to shift its focus from food and beverage to heavy
industry since it bought a domestic heavy machinery equipment maker. It recently
purchased U.S.-based Bobcat, the world's top compact construction equipment firm,
for $4.9 billion.
Under current regulations, a firm becomes a holding company if the combined value
of its affiliates' shares exceeds its total asset value with a debt-to-equity
ratio of below 200 percent.
Doosan Group has a total of 15 affiliates under its wing, including Doosan Heavy
Industries & Construction Co., the nation's leading power equipment maker, and
Doosan Infracore Co., the country's leading construction equipment maker.
Doosan aims to become the world's third-largest construction equipment maker by
2012 after U.S.-based Caterpillar and Japan's Komatsu Ltd. and is targeting
annual sales of $12 billion. It is currently ranked No. 7.
sam@yna.co.kr
(END)
non-core assets in an attempt to firm up its governance and hasten its
transformation into a holding company, industry sources said Monday.
Doosan's business portfolio ranges from food and beverage to heavy machinery and
power plants. It announced in 2006 that it would restructure parent company
Doosan Corp. into a holding firm before 2010.
Last week, Doosan sold its spirits-making unit for 503 billion won (US$369
million) to Lotte Chilsung. The company also sold its packaging unit, Doosan
Techpak, last month to a private equity fund for 400 billion won.
"With the sales of part of its assets, Doosan transformation into a holding
company structure is gathering steam due to reduced debts," said Chung Sung-hoon,
an analyst at Hyundai Securities.
Established at the end of the 19th century, Doosan is one of South Korea's oldest
family-owned conglomerates. The group announced a set of plans to turn into a
holding company after it was rocked by a slush fund scandal and a family battle
for control in 2005.
Doosan has been trying to shift its focus from food and beverage to heavy
industry since it bought a domestic heavy machinery equipment maker. It recently
purchased U.S.-based Bobcat, the world's top compact construction equipment firm,
for $4.9 billion.
Under current regulations, a firm becomes a holding company if the combined value
of its affiliates' shares exceeds its total asset value with a debt-to-equity
ratio of below 200 percent.
Doosan Group has a total of 15 affiliates under its wing, including Doosan Heavy
Industries & Construction Co., the nation's leading power equipment maker, and
Doosan Infracore Co., the country's leading construction equipment maker.
Doosan aims to become the world's third-largest construction equipment maker by
2012 after U.S.-based Caterpillar and Japan's Komatsu Ltd. and is targeting
annual sales of $12 billion. It is currently ranked No. 7.
sam@yna.co.kr
(END)
