Doosan Heavy to sell controlling stake in Doosan Engineering

November 19, 2021

Doosan Heavy Industries & Construction Co. said Friday that its board of directors has decided to hand over the managerial rights to its construction subsidiary Doosan Engineering & Construction Co. to The Zenith Holdings Co., an investment company.

The entity to be established by a consortium including Q Capital Partners, a local mid-sized financial company, will acquire a 54 percent stake in Doosan Engineering & Construction by buying the builder’s 182 million new shares for 250 billion won (US$211 million), Doosan Heavy said in a regulatory filing.

Doosan Heavy will hold a 46 percent stake in its construction subsidiary, it said.

Doosan Heavy has been seeking to improve its financial footing since early last year by selling assets, including its stake in affiliates.

It sold a controlling stake in its construction equipment subsidiary Doosan Infracore Co. to Hyundai Heavy Industries Holdings Co. (HHIH) in August.

The logo of Doosan Engineering & Construction Co. (Yonhap)

The logo of Doosan Engineering & Construction Co. (Yonhap)