[Click eStock] "Doosan Bobcat, Motrol Reacquisition 'Synergy' Questioned"

Insu's Disclosure Resolves Financial Uncertainty

On the 13th, Samsung Securities commented on Doosan Bobcat's reacquisition of Motrol, stating, "While it remains to be seen whether the two companies can immediately generate synergy, the resolution of uncertainties related to the acquisition price is positive for the stock price."

Han Young-su, head of the ESG Solutions team at Samsung Securities Research Center, said in a report on the same day, "Doosan Bobcat reacquired Motrol, a hydraulic equipment manufacturer previously sold to a private equity fund, for 246 billion KRW, which is about 1.1 times the net asset value (NAV). It will require long-term observation to confirm whether there will be synergy from the acquisition."

Han added, "Motrol is a company that manufactures construction equipment parts, but it is not specialized in the small equipment that is Doosan Bobcat's main product," and evaluated, "Motrol's profitability is still at a poor level." Motrol recorded sales of 250 billion KRW and an operating loss of 3 billion KRW last year.

However, he interpreted, "Doosan Bobcat did not invest an excessive amount of funds relative to its financial capacity in acquiring Motrol, and most of its past external corporate acquisition strategies have been successful. The fact of Motrol's acquisition was already known, and by disclosing the acquisition price, financial uncertainties have rather been resolved."