Align Partners "Doosan Bobcat Must Permanently Abandon Comprehensive Stock Swap"

Statement on the Press Conference Held on the 21st
Demand to Immediately Abandon the Comprehensive Stock Swap

Align Partners Asset Management expressed concerns regarding the press conference held on the 21st, where Doosan Bobcat CEO Scott Seongcheol Park mentioned that “the comprehensive stock swap between Doosan Bobcat and Doosan Robotics will be reconsidered after one year.” Following Scott's remarks, Doosan Bobcat's stock price dropped by 7% the next day.

Lee Changhwan, CEO of Align Partners Asset Management, warned, “If the possibility of a comprehensive stock swap remains, the lower the stock price from the perspective of Doosan’s controlling shareholders, the more favorable the exchange ratio becomes,” adding, “This could lead to shareholder value erosion.” He urged Doosan Bobcat to “immediately announce the permanent abandonment of a comprehensive stock swap based on market price ratios” to resolve this situation.

Lee also added, “If Doosan Bobcat wishes to become a wholly owned subsidiary, it can choose to conduct a public tender offer at a fair value equivalent to the M&A value that a third party is willing to pay.”

At the press conference, Park Sanghyun, CEO of Doosan Enerbility, apologized, saying, “We regret not having sufficiently communicated with shareholders regarding the current business restructuring,” and promised to engage more with both general shareholders and institutions going forward. Align Partners welcomed this statement.

Lee emphasized, “If the Doosan Group shows sincerity in communicating with shareholders, it must provide a sincere written response by November 15 regarding the demands to abandon the re-promotion of the comprehensive stock swap, expand shareholder returns, and enhance board independence.” He added, “There is a need to announce a corporate value enhancement plan promptly in line with government policies.”

Align Partners holds 1,003,500 shares (1% stake) of Doosan Bobcat. On the 15th, it also sent a shareholder letter to the board urging them to “announce the abandonment of the merger between Doosan Bobcat and Doosan Robotics.”

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