HHI Group buys 30 percent of Doosan Infracore for 690.9 billion won

Hyundai Heavy Industries Group closed a deal to acquire 30 percent of Doosan Infracore for 690.9 billion won ($600 million) through its Hyundai Genuine subsidiary.

Hyundai Genuine, the parent company of Hyundai Construction Equipment, was established in February to acquire the stake in Doosan Infracore, a machinery manufacturer, from Doosan Heavy Industries & Construction.

Doosan Infracore will become Hyundai Genuine’s subsidiary.

The deal closure was followed by Doosan Infracore’s settlement of a more than three-year legal dispute between its Chinese unit and investors that hold 20 percent of Doosan Infracore China.

The investors are Mirae Asset Private Equity, IMM Private Equity and Hana Financial Investment Private Equity.

Doosan Infracore will acquire the stake from the investor group for 305 billion won and exercise control over the Chinese company on Oct. 29.

The Chinese unit received 380 billion won in investment from the investors in 2011 in return for 20 percent of its stock under the condition that it goes public.

The initial public offering did not happen, leading the two parties into legal dispute.

As of 2019, Hyundai Construction Equipment had 1.5 percent of the market and Doosan Infracore 2.1 percent, according to market research company Yellow Table.

If combined, they would rank ninth globally.

Doosan Infracore’s annual operating profit over the past three years ranged between 264.8 billion won and 389.2 billion won.

BY JIN MIN-JI [jin.minji@joongang.co.kr]