Takeover creates Hanwha DefenseDoosan Group on Tuesday said it has sold 51 percent of Doosan DST shares, the group’s armored vehicle manufacturer, for 353.8 billion won ($297.4 million) to Hanwha Techwin to push its self-restructuring plan.
Hanwha Group announced that it had completed the acquisition of Doosan DST and will change its name to Hanwha Defense on Tuesday.
The company is one of three focused on the defense-related business under the group, and its yearly sales reached 693.2 billion won last year.
Hanwha added that it is expecting the group’s defense-related sales to reach some 4.2 trillion won this year after the acquisition. The group said it plans to become one of the top 10 defense companies in the world and record yearly sales of 11 trillion won by 2025.
Hanwha’s bid for Doosan DST was accepted on April 8.
After Tuesday’s deal, Doosan has made 3.3 trillion won by selling off its shares and projects within two years. The self-rescue plan helped shave the group’s debt from 11 trillion won as of the end of last year to some 8 trillion won.
Shin Hyun-woo of Hanwha Techwin will manage Hanwha Defense.
Doosan Infracore sold one of its machinery businesses to MBK Partners, a Seoul-based private equity fund, for 1.13 trillion won in April.
Doosan Investment Portfolio Holdings and Doosan Engineering & Construction also went through various procedures to improve their financial situation.
Doosan saw its operating profit grow 74 percent year on year in the first quarter, largely thanks to its restructuring efforts. Doosan added that it expects its financial position to improve in the second quarter.
BY KIM YOUNG-NAM [firstname.lastname@example.org]