Doosan Heavy Industries & Construction Receives Full Equity Contribution of Doosan Fuel Cell Shares Held by Doosan Co., Ltd. in Kind

[Asia Economy Reporter Jeong Hyunjin] Doosan Heavy Industries & Construction is accelerating its eco-friendly energy business, including the hydrogen sector, by acquiring additional shares of Doosan Fuel Cell, the leading company in hydrogen fuel cells for power generation.

On the 19th, Doosan Heavy Industries & Construction announced that it received all shares of Doosan Fuel Cell held by Doosan Co., Ltd. as a contribution in kind and issued new shares through a third-party allotment method, allocating them to Doosan Co., Ltd.

The Doosan Fuel Cell shares that Doosan Heavy Industries & Construction receives as a contribution in kind from Doosan Co., Ltd. consist of 10,016,672 common shares, 1,880,843 first preferred shares, and 158,248 second preferred shares, totaling approximately 544.2 billion KRW. Doosan Heavy Industries & Construction will issue 47,843,956 new shares through a third-party allotment method and allocate them to Doosan Co., Ltd. The issue price per share is 11,375 KRW.

Doosan Heavy Industries & Construction became the largest shareholder of Doosan Fuel Cell last November by receiving a 15.6% stake from the major shareholder of Doosan Co., Ltd. With the recent contribution in kind of 14.7% stake held by Doosan Co., Ltd., Doosan Heavy Industries & Construction’s total stake in Doosan Fuel Cell will increase to 30.3%.

A Doosan Heavy Industries & Construction official stated, "We will maximize the business synergy with Doosan Fuel Cell and accelerate our eco-friendly energy business." The business synergy between Doosan Heavy Industries & Construction and Doosan Fuel Cell is expected to expand especially in the hydrogen energy sector.

Doosan Heavy Industries & Construction is constructing Korea’s first hydrogen liquefaction plant at its headquarters in Changwon and is participating in green hydrogen production projects utilizing renewable energy in Jeju and Donghae. Doosan Fuel Cell is expanding its presence in the hydrogen fuel cell market for power generation by supplying 50MW fuel cells to the Daesan by-product hydrogen power plant.

By securing Doosan Fuel Cell’s fuel cell power generation technology, Doosan Heavy Industries & Construction has established an eco-friendly power generation technology lineup that includes fuel cells (440kW), wind power (3~8MW), small and medium-sized reactors (SMR, 77MW), and gas turbines (270MW, 380MW).

Meanwhile, Doosan Heavy Industries & Construction also announced on the same day the spin-off and merger with Doosan Infracore. The plan involves a spin-off of the company holding affiliate-related assets such as Doosan Bobcat shares from Doosan Infracore, followed by an absorption merger by Doosan Heavy Industries & Construction.