ID :
179533
Tue, 05/03/2011 - 10:04
Auther :

Doosan Heavy to spend 218 bln won on purchase of stake in affiliate

SEOUL, May 3 (Yonhap) -- Doosan Heavy Industries & Construction Co., South Korea's leading power equipment maker, said Tuesday that it will spend 218 billion won (US$204 million) in increasing its stake in an affiliate.
In a regulatory filing, Doosan Heavy said it will buy 43.65 million shares of Doosan Engineering & Construction Co., boosting its stake in the builder to 72.8 percent.
Doosan Engineering has been suffering a liquidity shortage due to a slump in the local construction sector.
"The investment is aimed at helping boost Doosan Engineering's financial soundness and solidifying its managerial right," Doosan Heavy said in the filing.
Doosan Engineering said earlier in the day that it plans to raise 500 billion won by selling shares and debts.
Shares of Doosan Heavy were trading at 62,700 won on the Seoul bourse as of 2:27 p.m., down 1.72 percent.
sam@yna.co.kr

X