이 기사는 2020년 06월 24일 08:00 thebell 에 표출된 기사입니다.

Doosan Engineering & Construction (Doosan E&C) plans to spin off some bad assets after criticism that its earlier move to separate low-quality assets was not enough to attract potential buyers, sources said on June 22.

Earlier this month the company split off some assets linked to its long-term receivables to create a new subsidiary called Value Growth. Additionally it is planning to spin off part of its some 1.78 trillion won ($1.47 billion) liabilities to reduce contingent liabilities related to debt guarantee exposure.

The moves are aimed at attracting more attention from potential buyers, industry watchers said. Doosan E&C, which was put up for sale last year even before Doosan Group’s restructuring efforts started earlier this year, has been struggling to find bidders due to its weak financial position and poor disclosure of information.

“Segregating good assets from bad ones appears to be the only way for Doosan E&C to put the price tag it wants,” a source said. “Doosan E&C’s value will surely increase after the separation process is completed.”

The key is how much of the company’s total liabilities will be offloaded. Doosan E&C is expected to offload its idle development projects, such as malls in Cheonan and Yongin, to a newly formed entity.

After the planned separation Doosan E&C’s debt ratio and risk of contingent liabilities are expected to drop significantly. Currently the company’s debt guarantee exposure is estimated at nearly three trillion won.

“Doosan Heavy Industries & Construction, the parent of Doosan E&C, will likely offload Doosan E&C’s distressed assets and liabilities pointed out by potential investors to separate them from the target,” the source said. “This could accelerate the sale process.”

(Reporting by Ik-hwan Choi)