Doosan Group has agreed to sell its stakes in lucrative units in return for state-led rescue loans to Doosan Heavy Industries & Construction, but the sale process fails to pick up due to high price demand from the seller.

Battery copper foil and OLED material maker Doosan Solus drew hot interest after its parent offered to sell 51 percent.

SkyLake Investment and other local PEFs tapped the buyer, but bowed out after the seller demanded minimum 1 trillion won ($810 million).

PEFs estimated 500 to 600 billion won for the stake plus management right, given SKC’s buyout of 100 percent stake in No. 1 battery copper foil maker KCF Technologies (KCFT) at 1.2 trillion won early this year.

Doosan however does not budget from minimum 1 trillion won, citing its edge in the OLED material business and expansion at its Hungary plant that will increase the annual capacity to 50,000 above KCFT’s 32,000 tons upon completion in 2021.

Sale of Doosan Corporation Mottrol, the hydraulic components unit, has been stalled as well due to price difference of up to 150 billion won. Doosan Corp. is asking for 450 billion won or more for the sale, whereas buyers cannot offer more than 300 billion won.

No bidders have emerged for Doosan Engineering & Construction Co. due to lack of appealing assets despite improved financial health after it divested the ready-mix concrete (RMC) business and related assets over the past five years.

Bidders may count on pressure from creditors to get a better price. But state lender may not press the conglomerate to hasten sale of sound companies below their value.

Unlike stake sale, divesture of real estate assets has made progress.

Doosan Heavy Industries & Construction is fine-tuning price terms for sale of its Club Mow CC golf resort with two bidders. Doosan Tower, the headquarters building of the group’s holding entity in Seoul, will likely go under new owner – Mastern Investment Management – soon.

Jones Lang LaSalle Inc. (JLL) and Avison Young Korea have been named to lead-manage sale of Doosan Engineering & Construction’s headquarters building in southern Seoul.

By Kim Gi-chul, Noh Hyun and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]