Allain Partners Sends Shareholder Letter to Doosan Bobcat Urging Withdrawal of Merger Proposal and Sale via Public Auction

Align Partners Asset Management announced on the 3rd that on the 25th of last month, it sent a shareholder letter urging Doosan Enerbility's board of directors to withdraw the proposed spin-off merger with Doosan Robotics and to sell its controlling stake in Doosan Bobcat through a public competitive bidding process.

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Align Partners pointed out that Doosan Enerbility undervalued the per-share price at 72,729 KRW when transferring its 46.06% stake in Doosan Bobcat to its affiliate Doosan Robotics. Based on the transaction multiples of peer companies such as Caterpillar, Deere, and Kubota, as well as the multiples from Doosan Bobcat's past acquisition and initial public offering (IPO), the appropriate per-share value of Doosan Bobcat's stake is estimated to be around 130,000 KRW. This, they argue, could secure approximately an additional 2.6 trillion KRW in disposal proceeds compared to the current merger plan.

Align Partners emphasized that disposing of the controlling stake in Doosan Bobcat to an affiliate at a discounted price without conducting a public competitive bidding process may constitute a breach of the board's fiduciary duties. In particular, they judged that there was a lack of effort to maximize the interests of all shareholders through transparent procedures.

Align Partners proposed withdrawing the spin-off merger plan and proceeding with the sale through a public competitive bidding process targeting various potential buyers, including Doosan Robotics. They also expressed willingness to provide professional assistance necessary for this process.

Align Partners stated, “We hope the board will proactively accept the proposal and create an opportunity to restore trust among investors and the capital market,” adding, “Whether the Doosan Enerbility board responds to our shareholder letter demanding a withdrawal of the spin-off merger plan, which has attracted significant market and social attention for rational reasons, and the content of such a response, will be an important reference for the voting decisions of major institutional investors, including the National Pension Service, and general shareholders about one week before the shareholders' meeting.”

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