이 기사는 2020년 06월 01일 08:00 더벨 유료페이지에 표출된 기사입니다.
Doosan Group has received non-binding offers for Doosan Corporation Mottrol from potential buyers. Multiple potential buyers have reportedly submitted their offers despite insufficient time to make their decisions.
Doosan Group and its sale manager Credit Suisse (CS) have held the preliminary bid to acquire the hydraulic component manufacturer on May 28, according to industry sources. Multiple potential buyers including strategic investors and financial investors have reportedly submitted their non-binding offers.
The preliminary bid was expected to draw lukewarm response from prospective buyers as the sale process has been moving forward a lot faster than expected. Bucking expectations, multiple potential buyers including those who have a good understanding of the industry seem to have participated in the bidding round. A private equity arm of a domestic brokerage firm has also joined the race.
Shortlisted bidders are likely to be announced in the near term. “Doosan Group has normally focused on confidentiality and deal certainty when carrying out M&A deals. Likewise, it is highly likely that prospective buyers who meet these conditions will get a chance to negotiate with the group,” an investment banking (IB) industry source said.
Prospective buyers could propose their preferred deal structure in the first round of bidding, but market insiders said that those who proposed to sell Doosan Corporation Mottrol’s defense business separately are less likely to be included in the shortlist. The group wants to sell the company as a whole, which makes prospective buyers at home emerge as strong candidates.
Whether the seller and potential buyers could agree on the company’s valuation appears to be the key. Doosan Group is said to be seeking 400 billion won ($324 million) to 500 billion won for Doosan Corporation Mottrol, 10 times its earnings before interest, tax, depreciation and amortization (EBITDA) in 2019.
“The valuation gap between the seller and prospective buyers is likely to be greater than 100 billion won. The deal will be completed only if the two sides reach an agreement on the valuation,” a second IB industry source said.
Shortlisted candidates will go through processes including due diligence via a virtual data room and management presentation to decide whether they will participate in the final round of bidding.
(Reporting by Ar-rum Rho)