[Market Now] Hanwha Techwin selected preferred bidder for Doosan DST

Hanwha Techwin, a listed defense manufacturer, has been chosen as the preferred bidder for Doosan DST, according to local news reports.

Hanwha Techwin was said to have offered around 700 billion won ($600 million) for a 100 percent stake in Doosan DST owned by Doosan Group’s special purpose company DIP Holdings and private equity partners -- IMM and Mirae Asset.

Hanwha had closely competed with LIG Nex1 over DST, which was put on sale by Doosan last year as the group was facing a liquidity shortage.

DST produces armored vehicles and missile launchers, while Hanwha Techwin’s core defense portfolio includes self-propelled artillery. Doosan DST supplies its launchers for Techwin’s parent Hanwha Corp’s multiple rocket launchers. Hanwha Corp. has a 32 percent stake in Techwin.

Hanwha Techwin is expected to further negotiate with Doosan and DST’s sale manager Credit Suisse to finalize the deal by the end of next month.

By Park Hyong-ki (hkp@heraldcorp.com)