Doosan Bobcat, Merging with Doosan Robotics, Plans to Cancel Treasury Shares Within the Year

Doosan Bobcat plans to cancel treasury shares acquired this year, including existing treasury shares and those obtained through the exercise of appraisal rights by shareholders opposing the merger.

According to industry sources on the 22nd, Doosan Bobcat will resolve at the extraordinary general meeting of shareholders on September 25 to arbitrarily cancel treasury shares acquired through the exercise of appraisal rights by shareholders opposing the merger with Doosan Robotics in November.

In addition to the 156,957 treasury shares already held, the company plans to cancel all additional treasury shares arising from the appraisal rights without issuing new shares of the merged corporation.

The appraisal right is a right that allows shareholders opposing mergers or corporate restructuring to request the company to purchase their shares at a certain price. Doosan Bobcat shareholders can request the company to buy their shares within 20 days from the date of the shareholders' meeting resolution.

When Doosan Bobcat's treasury shares are actually canceled, the amount of new shares issued in the future will decrease, which may result in an increase in the shareholding ratio of existing shareholders.

Previously, Doosan Group proposed a business restructuring plan to spin off Doosan Bobcat from Doosan Enerbility and merge it with Doosan Robotics. However, controversy arose in the market over the merger ratio between the two companies. Doosan Robotics is allocated 0.63 shares for every one share of Doosan Bobcat, leading to claims that Doosan Bobcat's corporate value was undervalued.