Doosan’s Restructuring
Doosan Infracore unveiled on November 21 that it plans to sell stakes to overseas investors as an effort to improve its financial status.
The construction equipment company said in a regulatory filing that it would issue global depository receipts (GDRs), or certificates of stock ownership, worth up to US$400 million.
According to the filing, the GDRs represent 40 million common stocks and will be listed on the Singapore Exchange. The proceeds from the stake sales will be used to repay foreign currency-denominated debts. The price and number of stocks to be sold will depend on the procedure of the GDRs.
Doosan Infracore holds foreign debts worth 3.8 trillion won (US$3.58 billion). The company borrowed around US$2.9 billion to finance its takeover of the US-based construction equipment maker Bobcat in November 2007.