Korean business group Doosan Corporation has announced that it has executed an agreement with MBK Partners, one of the largest private equity fund managing companies in Korea, to sell 100 per cent of its stake in the packaging business Techpack.
Doosan Corporation and MBK Partners agreed on the transaction value of Techpack at KRW 400bn and further agreed to execute the deal before the year end.
A spokesperson for Doosan says, “It’s the result of MBK Partners’ recognition of stable cash flow of Techpack as well as the company’s firm lead on the market share of Korea’s packaging industry as well as high assessment of the company’s technology and personnel.”
They continue, “Through the recent sales, Doosan will generate approximately KRW 193bn in sales profits and reduce the debt ratio to about 46 per cent, which will eventually lead to a significant improvement in the corporate financial structure.”
Doosan Corporation says it is planning to use the sales proceeds to reduce debts and as reserved capital for future business opportunities, which will accelerate the company’s efforts in transforming into a holding company.
Techpack, which was the first domestic enterprise to enter into glass bottle manufacturing business has grown into comprehensive package manufacturer producing glass bottles, cans, PET, and other drink and food packaging containers and today, holds the number one market share in the domestic packaging container industry, according to Doosan.
