Doosan Group subsidiaries enhance communications with shareholders

[Courtesy of Doosan Enerbility Co.]

Three subsidiaries of South Korea’s Doosan Group have rolled up their sleeves to enhance communications with respective shareholders amid an ongoing group-wide restructuring.

Doosan Enerbility Co., Doosan Bobcat Inc., and Doosan Robotics Inc. sent letters to each of their shareholders, responding to their complaints that the companies are prioritizing their own interests at the expense of minority shareholders.

Under the group-wide restructuring, Doosan Bobcat, an affiliate of Doosan Enerbility, will be merged with another subsidiary Doosan Robotics.

In its statement, Doosan Enerbility announced a plan to promptly invest in nuclear power generation.

The company plans to raise 1 trillion won ($734 million) through the spinoff of Doosan Bobcat and swiftly invest the proceeds in expanding nuclear power plant facilities.

In their letter to shareholders, Doosan Bobcat and Doosan Robotics emphasized that the merger will enhance the new unity‘s cost structure to some extent.

Doosan Enerbility added that the spinoff would reduce its net borrowings by 1.2 trillion and free up about 1 trillion won for new investments, enabling a stronger focus on the nuclear power sector, which is experiencing significant growth worldwide.

The company said it would aim to win contracts for more than four large nuclear reactors annually over the next five years and expand its small modular reactor (SMR) production facilities to 20 units per year.

Regarding a share exchange ratio between Doosan Robotics and Doosan Bobcat, set at 1:0.63, Doosan Bobcat CEO Scott Park said, “The stock price serves as the objective indicator of the company’s value.”

“We will cancel all treasury shares acquired through the exercise of stock purchase warrants,” he added.

Ryu Jung-hoon, CEO of Doosan Robotics, mentioned that the merger with Doosan Bobcat could boost sales to over 1 trillion won in the next five years.