Chairman Park Jung-won Donates Doosan Fuel Cell Shares to Doosan Heavy Industries for Free... 'A Financial Improvement Relief'

Chairman Park and Doosan affiliates hold Doosan Fuel Cell shares worth 606.3 billion KRW
Expecting Doosan Heavy's financial structure improvement and business synergy

[Asia Economy Reporter Ki-min Lee] Park Jung-won, chairman of Doosan Group, along with major shareholders of Doosan Co., Ltd., has executed the previously pledged free transfer of Doosan Fuel Cell shares to improve the financial structure of Doosan Heavy Industries & Construction.

On the 26th, Doosan Fuel Cell announced that Park Jung-won and other special related parties of Doosan Co., Ltd. have donated 23% of their common shares in Doosan Fuel Cell to Doosan Heavy Industries & Construction free of charge. This amounts to a total of 12,763,557 shares, valued at approximately 606.3 billion KRW based on the closing price on the 25th.

Doosan Heavy Industries & Construction will improve its financial structure through capital expansion resulting from the receipt of Doosan Fuel Cell shares. The financial condition is expected to improve significantly once the upcoming paid-in capital increase next month is completed.

A Doosan official stated, “With Doosan Heavy Industries & Construction becoming the largest shareholder of Doosan Fuel Cell through this share transfer, business synergy between the two companies is anticipated, which will further strengthen Doosan Group’s eco-friendly energy business.”

Moreover, synergy effects are expected between the eco-friendly energy businesses of Doosan Heavy Industries & Construction and Doosan Fuel Cell. Doosan Fuel Cell currently holds a dominant position in the hydrogen fuel cell market for power generation. Doosan Heavy Industries & Construction is advancing projects such as Korea’s first liquefied hydrogen plant, green hydrogen production through renewable energy like wind power, and hydrogen turbine business based on core gas turbine technology.

Therefore, by securing Doosan Fuel Cell’s fuel cell power generation technology, Doosan Heavy Industries & Construction will establish an eco-friendly power generation technology lineup that includes fuel cells (440 kW), wind power (3~8 MW class), small modular reactors (SMR, 60 MW), and gas turbines (270 MW, 380 MW).

Doosan Fuel Cell will also leverage Doosan Heavy Industries & Construction’s design, procurement, and construction (EPC) capabilities and global customer network to establish a foothold for entering the global market.

A Doosan official said, “Thanks to the active support of creditors, we were able to lay the foundation for improving Doosan Heavy Industries & Construction’s financial structure and restructuring its business portfolio as planned. Just as we have fulfilled the promise of the free transfer of Doosan Fuel Cell shares, we will proceed smoothly with the remaining financial structure improvement tasks.”

[Image source=Yonhap News]

This content was produced with the assistance of AI translation services.