By Kim Yoo-chul
Staff Reporter
In an apparent move to finalize its years-long efforts to transform into a holding company system by slimming down its business structure, South Korea's Doosan Corp. said Thursday it will sell its wholly-owned liquor business group.
"We will sell the liquor group to improve our balance sheet before transforming into a holding company slated for the year's end," its spokesman Shin Dong-gyu said, adding Doosan's debt-to-equity ratio was currently at 150 percent.
"Some four or five private equity funds have shown interest in our liquor unit. But no decision has been made yet," Shin said. Lotte Group has reportedly been known as a strong potential buyer for the unit to expand its liquor-related business.
The "widely expected" decision has been in line with Doosan's strategy to lessen the financial burden of its acquisition of Bobcat by selling unprofitable units and to keep its early promise to strengthen transparency in management.
"Doosan wants to simplify its money-making sources capitalizing on heavy-related sectors. The Bobcat business could be a key catalyst for this," Shin said.
Doosan also plans to sell its clothes and telecommunication units in line with the strategy, according to reports. Separately, Doosan Heavy Industries & Construction has signed a technology pact with U.S. water treatment company Carollo.