Doosan Group’s plan to spin off and merge Doosan Bobcat appears likely to fall through. Over the past six months, the group has pushed to split Doosan Bobcat, a subsidiary of Doosan Enerbility, and merge it with Doosan Robotics, citing the need to bolster competitiveness in the nuclear power sector.
However, the National Pension Service (NPS), which holds a 6.85% stake in Doosan Enerbility, opted to abstain unless specific criteria are satisfied on the proposal, effectively signaling opposition. As a result, the plan is expected to be rejected at the Doosan Enerbility shareholders’ meeting scheduled for Dec. 12.
On Dec. 9, the National Pension Fund’s Trustee Responsibility Committee (TRC) held its 15th session and conditionally approved the spin-off and merger. The committee noted it would vote in favor only if the stock price as of Dec. 10—the day before the deadline for notifying opposition to the merger—exceeds the expected purchase price. Otherwise, the committee will abstain. The TRC explained that this decision is aimed at securing the right to demand a stock buyback.
Under S. Korea’s Capital Markets Act, shareholders opposed to a merger can notify the company of their dissent before the shareholders’ meeting and demand that their shares be purchased at the pre-determined buyback price. For Doosan Enerbility, the price is set at 20,890 won (approximately $14.64), and for Doosan Robotics, it is around $56.38.
Previously, Doosan Enerbility has faced a fierce backlash from general shareholders over accusations of an unfair merger. Considering the company’s current intraday stock price is in the 17,000-won range (roughly $12.87), its value would need to rise by more than 20% by Dec. 10 for the NPS to vote in favor.
