This file photo, provided by Doosan Infracore Co. on Jan. 20, 2021, shows one of the company's excavator models in use. (Doosan Infracore Co.)
South Korea's power plant builder Doosan Heavy Industries & Construction Co. said Friday that its board of directors has decided to sell the company's 35 percent stake in Doosan Infracore Co. for 850 billion won ($757 million) to global shipbuilding holding company Hyundai Heavy Industries Holdings Co. (HHIH).
Cash-strapped Doosan Heavy disposed of 76 million shares of its construction equipment unit Doosan Infracore to improve business efficiency and management structure, the company said in a regulatory filing.
On Dec. 10, a consortium led by HHIH was picked as the preferred bidder for the 35 percent stake in Doosan Infracore held by Doosan Heavy.
The consortium between HHIH and Korea Development Bank Investment (KDBI), a unit of the state-run KDB, inked an initial deal for the acquisition on Dec. 23.
After finalizing the deal, HHIH said in an emailed statement that it will seek approval for the acquisition of Doosan Infracore from South Korea's Fair Trade Commission and antitrust regulators in China and other countries.
HHIH plans to complete the process to acquire the top construction equipment maker within the third quarter of the year.
HHIH already has a construction equipment unit -- Hyundai Construction Equipment Co. --under its wing.
In South Korea, three makers -- Doosan Infracore, Hyundai Construction Equipment and Volvo Construction Equipment -- are vying to expand their presence.
HHIH said it will run the two construction equipment companies under an independent management system.
Shares in Doosan Infracore rose 2.36 percent to close at 9,110 won on Friday, while HHIH was up 3.03 percent to close at 255,000 won. (Yonhap)