SEOUL– South Korea’s top construction equipment maker Doosan Infracore Co. said Friday that its shareholders approved a scheme to reduce its capital base to improve its financial health.
Under the approval made in a preliminary shareholder meeting, the company plans to cut its capital by 80 percent to some 78.3 billion won(US$67 million) and the stock’s face value to 1,000 won from 5,000 won, it said in an emailed statement.
The shareholders also agreed to rename the company Hyundai Doosan Infracore Co., which was changed after 16 years, the company said.
The capital reduction and others came after cash-strapped Doosan Heavy Industries & Construction Co. sold a major stake in Doosan Infracore in December last year to Hyundai Heavy Industries Holdings Co. (HHIH), the world’s largest shipbuilding group, for 850 billion won.
Last month, HHIH completed the process to acquire Doosan Infracore after establishing its second subholding company Hyundai Genuine Co. to control its construction machinery maker Hyundai Construction Equipment Co. and the top construction equipment maker.
Trading of Doosan Infracore will be suspended from Oct. 8 to 25 after the capital reduction and will resume on Oct. 26.
Source: Yonhap News Agency