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The likelihood of Doosan Group seeing through the sale of Doosan Mottrol, a maker of military equipment, has become high as the tender drew multiple bidders including China’s heavy machinery giant Xuzhou Construction Machinery Group (XCMG).

According to sources from the investment banking industry on Monday, a Socius-Well to Sea Investment consortium, NH Investment & Securities PE-Opus PE consortium and China’s XCMG were confirmed to have handed in final bid for the controlling stake estimated at 400 billion won ($333.9 million) to 500 billion won..

Doosan and its sales advisor Credit Suisse plan to pick a preferred candidate within this month and complete the deal in the fourth quarter after demerging Mottrol from its parent Doosan Corp..

Shares of Doosan Corp. jumped 14 percent to 47,300 won on the news.

China’s XCMG is the world’s fourth largest construction machinery maker following America’s Caterpillar, Japan’s Komatsu and America’s Deere & Company. The Chinese company once mulled taking over Doosan Machine Tools, the nation’s biggest manufacturer of turning centers, machining centers and other precision machine tools that was put up for sale after a failed initial public offering (IPO) attempt last year.

The consortium of NH and Opus PE created a 200 billion won worth fund to invest in Mobase Electronics, Seoyeon Electronics and Eduspa. It was picked as a consignment operator of the National Pension Service (NPS).

Socius-Well to Sea consortium is known to be familiar with Doosan Group as it bought the group’s engine making unit Doosan Engine for 82.2 billion won in 2018.

Mottrol, which is in charge of making oil pressure machines and military equipment, is one of the core divisions of Doosan. It raked in 38.9 billion won in operating profit on sales of 562.6 billion won last year. Every buyout candidate is showing high interest in the business as its earnings before interest, tax, depreciation and amortization (EBITDA) amounted to 50 billion won. Its sale is expected to help ease liquidity crunch at its parent firm.

The sale to a foreign maker requires an approval from minister of Trade, Industry and Energy because it is categorized as a defense company.

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