Doosan Hit by Martial Law Fallout... Business Structure Reorganization Fails Amid Sharp Stock Price Drop (Update)
Withdrawal of the Temporary General Meeting Scheduled for the 12th
Doosan Group's plan to split and merge Doosan Bobcat and Robotics, which was being pursued to restructure its business, has fallen through.
Doosan Enerbility announced on the 10th that it will withdraw the convening of the extraordinary general meeting scheduled for the 12th to decide on the split and merger, in which the investment business division (the division subject to the split and merger) would be split and absorbed by Doosan Robotics.
The company explained the reason for the withdrawal, stating, "Ahead of the extraordinary general meeting, due to unexpected external environmental changes, the stock prices of our companies sharply declined within a short period, greatly widening the gap between the stock price and the stock purchase request price. Many shareholders who were in favor have shifted to opposition or non-participation to exercise their stock purchase rights due to the stock price decline, making it uncertain whether the special resolution requirements for the split and merger agenda at the extraordinary general meeting will be met, and it appears almost certain that the stock purchase requests will exceed the initial expectations."
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It added, "In this uncertain situation, we judged that it is more desirable to make a prompt decision and inform shareholders of the company's direction rather than leaving them with ongoing uncertainty. After careful internal review and discussion, the board of directors resolved to withdraw the convening of the extraordinary general meeting on this day."
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