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From the left, Kim Hyun-jung, a member of the Democratic Party of Korea, and Park Jung-won, chairman of Doosan Group (photo = Yonhap News) |
[Alpha Biz= Kim Jisun Reporter] The Democratic Party is preparing legislation to prevent the merger between deficit-ridden Doosan Robotics and profitable Doosan Bobcat, a move currently under controversy.
Specifically, the legislation aims to use intrinsic value rather than stock market price as the benchmark for the merger ratio between listed companies, focusing on minimizing damage to ordinary shareholders.
According to Alpha Biz's report on the 16th, Kim Hyun-jung, Democratic Party lawmaker for Pyeongtaek City, Gyeonggi Province, will propose amendments to the Capital Markets and Financial Investment Act.
The proposed amendments include averaging asset and earnings values when assessing the merger value between listed companies.
NiKe Law Firm's representative lawyer, Lee Hyun-kwon, stated, "Representative Kim Hyun-jung's amendment, known as the Doosan Bobcat Prevention Act, adopts valuation methods already in use by overseas and unlisted companies in Korea," emphasizing its necessity for eliminating Korea Discount and promoting genuine value-up.
Under current law, evaluations of merger target companies are based solely on their stock market values at the time of merger.
According to Doosan Group's rebalancing plan, the stock value of Doosan Bobcat, set to undergo personnel restructuring under Doosan EnerVibiLite, stands at 0.63:1 compared to Doosan Robotics, a robot-themed company facing deficits.
The Korea Governance Forum criticized, "Doosan's rebalancing plan is an example of exploiting the maximum clause of the Capital Market Law's merger ratio for listed companies," condemning the shocking situation where a company with 1/183 of Doosan Bobcat's revenue is recognized for its merger value.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
