Doosan Group revives controversial plan to merge two subsidiaries

By Kim Joo-heon Posted : October 21, 2024, 16:36 Updated : October 21, 2024, 17:08
This photo shows Doosan Bobcat's plant in Bismarck, North Dakota. Captured from the official wesbite of Doosan Bobcat
SEOUL, October 21 (AJP) - Korea's Doosan Group is reviving plans to merge subsidiaries Doosan Bobcat and Doosan Robotics, two months after abandoning the proposal amid investor and regulatory opposition.

Doosan Robotics and Doosan Enerbility, Bobcat's parent company, said they held separate board meetings Monday and approved a restructuring plan, under which Bobcat, a construction equipment manufacturer, will be separated from its parent and affiliated under Robotics.

Enerbility will create a new entity holding Bobcat shares, which will then merge with Robotics.

The boards revised the merger ratio between the new entity and Robotics, increasing it from 1:0.031 to 1:0.043. 

This means shareholders of 100 Enerbility shares would now receive about 4.3 Robotics shares, up from 3.1.

Doosan Group scrapped the original merger plan in August following criticism from financial authorities and shareholders. 

Critics argued the plan undervalued the profitable Bobcat while overvaluing the loss-making robotics company.
 

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