Information on the target
Doosan Škoda Power, a prominent steam turbine manufacturer based in Pilsen, Czech Republic, operates within the turbine manufacturing sector, which is a critical component of the industrial machinery landscape. The company specializes in the design and production of high-efficiency steam turbines, catering to both domestic and international markets. Recently, Doosan Power Systems, the majority shareholder, executed a significant transaction by selling a 17% stake in Doosan Škoda Power, generating gross proceeds of CZK 2.196 billion (approximately EUR 90.3 million).
This transaction was executed through an accelerated bookbuilding process, allowing for rapid collection of orders from institutional investors. The offering was well-received, leading to an upsized placement of shares, which demonstrated strong investor demand and confidence in the company's growth trajectory.
Industry overview in the target’s specific country
The turbine manufacturing industry in the Czech Republic has experienced notable growth, driven by increasing demand for energy-efficient solutions and advancements in technology. The country has a rich industrial heritage, and its strategic location in Central Europe positions it as a key player in the European energy market. The Czech Republic is home to several established manufacturers and suppliers in the turbine sector, which contribute to both domestic energy production and export opportunities.
In recent years, the Czech government has emphasized the importance of renewable energy sources, which has further stimulated the turbine manufacturing sector. This shift towards sustainable energy solutions has encouraged local manufacturers to innovate and adapt their product offerings, focusing on high-efficiency turbines that can operate in various energy generation contexts, including wind and hydroelectric power.
As of mid-2026, Doosan Škoda Power reported a robust order backlog of CZK 17.9 billion, reflecting a significant increase from CZK 8.2 billion the previous year. This growth in outstanding orders indicates a strong market demand for turbine solutions, positioning the company favorably within the competitive landscape. Additionally, the industry is witnessing a trend towards digitalization and automation, which is expected to enhance operational efficiencies and reduce production costs.
The rationale behind the deal The decision by Doosan Power Systems to sell a 17% stake in Doosan Škoda Power was primarily driven by the need to capitalize on favorable market conditions and strong investor interest. The transaction allowed existing shareholde…