Doosan Infracore Sells Forklift Business to Pare Bobcat DebtKyunghee Park
Doosan Infracore Co. agreed to sell its forklift unit to an affiliate and Standard Chartered Plc for 245 billion won ($230 million) to repay funds it borrowed to buy Bobcat units.
The transaction will be completed by the third quarter, Doosan Infracore, South Korea’s biggest construction-equipment maker, said today in a filing. A Doosan Corp. unit will have a 51 percent stake in the venture buying the business, with Standard Chartered Private Equity Ltd. holding the rest, it said.
Doosan Infracore has already raised 625 billion won from selling assets, including a 20 percent stake in a Chinese unit, as it works to repay the $3.9 billion it borrowed from banks for the Bobcat deal in 2007. The company will also use some of the sale money in its construction equipment and machine-tool units.
The Incheon-based equipment-maker gained 1.8 percent to close at 28,550 won in Seoul trading before the announcement. The stock has advanced 2 percent this year, compared with a 7.7 percent climb in South Korea’s benchmark Kospi index.
Doosan Infracore agreed to buy Bobcat units from Ingersoll-Rand Co. for $4.9 billion in 2007. The deal was the largest overseas acquisition by a South Korean company.