이 기사는 2020년 05월 29일 08:00 더벨 유료페이지에 표출된 기사입니다.
Doosan Group is accelerating the sale of Doosan Corporation Mottrol, raising speculations that the seller could have other reasons behind the move.
Doosan Group and its sale manager Credit Suisse (CS) have informed potential buyers that they will receive non-binding offers for the hydraulic component manufacturer on May 28, sources familiar with the situation said on May 27. Market insiders have widely seen the sale process is moving forward faster than expected, considering not much time has passed since the group’s restructuring plan began.
The group and its lead sale manager have reportedly started a marketing campaign earlier this month to attract potential buyers including domestic and foreign financial investors. After having sluggish negotiations with one or two financial investors, Doosan Group has decided to sell the company through a public auction.
Normally an auction process starts with the seller sending out teaser letters, followed by signing a non-disclosure agreement (NDA) with potential buyers. The seller then sends out information memorandum (IM) to provide potential buyers with opportunities to explore the target in more detail. Approximately five to six weeks after circulating IM, the seller receives non-binding offers, followed by binding offers to finally select its preferred bidder.
For Doosan Corporation Mottrol, however, the group is set to receive non-binding offers in less than a month since it started its marketing campaign, which is a rare case. Some potential buyers have complained that they have insufficient time to thoroughly explore the company.
This is raising speculations that the seller could have a specific buyer in mind. Some say Doosan Group is pushing forward the sale process, bearing in mind the possibility that the deal could fall through, in order to show creditors its determination to secure liquidity. But Doosan Group reportedly said it pursues a quick completion of the transaction because it is urgently in need of liquidity.
Doosan Group is said to be seeking 400 billion won ($324 million) to 500 billion won for Doosan Corporation Mottrol. But prospective buyers are questioning whether the company is worth 10 times of earnings before interest, tax, depreciation and amortization (EBITDA).
Doosan Corporation Mottrol’s defense business also could be an obstacle for the sale because it should be excluded when the company is sold to foreign investors. Accordingly, market insiders have long been pointing out that the group will have to sell the defense business separately to attract a larger pool of potential buyers.
(Reporting by Hee-yeon Han)