[Market Focus] Doosan Secures SK Siltron Acquisition Funds... 5% Surge as Uncertainties Resolved

Doosan's stock price is showing an increase of over 5% on the domestic stock market on December 24. This rise is attributed to the resolution of uncertainties surrounding the use of treasury shares and the possibility of a rights offering, following the company securing funds for the acquisition of SK Siltron.

As of 9:50 a.m. on this day, Doosan is trading at 822,000 won per share, up 5.38% from the previous session.

On the previous day, Doosan announced that it had entered into a price return swap (PRS) contract for 11.7 million common shares of Doosan Robotics (representing an 18.05% stake) at 81,000 won per share. The funds secured through this contract are expected to be used as acquisition capital for SK Siltron, which is seen as the main driver behind the stock's upward movement. The total amount secured through this contract is 947.7 billion won.

Kim Suhyeon, a researcher at DS Investment & Securities, stated, "If the newly raised funds are combined with Doosan’s existing cash and cash equivalents of 1.27 trillion won, the available capital exceeds 2.16 trillion won," adding, "This capital is highly likely to be used for the acquisition of a 70.6% controlling stake in SK Siltron." Currently, SK Siltron's enterprise value is estimated at around 5 trillion won, and after deducting net debt, the equity value is estimated at about 2.5 trillion won.

Researcher Kim further noted, "If a 70.6% stake is acquired, the actual acquisition price will be slightly over 2 trillion won," and evaluated, "This fundraising is expected to completely resolve concerns related to Doosan's use of treasury shares or the possibility of a rights offering that have been raised so far."

Yang Seungsoo, a researcher at Meritz Securities, also commented, "Even after factoring in the management premium, the current cash on hand makes it structurally feasible to proceed with the acquisition," and diagnosed, "It is positive in that it has effectively dispelled concerns about the issuance of exchangeable bonds (EB) based on treasury shares and the possibility of a rights offering that have been raised thus far."