In today’s briefing:
- Flow Dynamics from NPS Exercising Appraisal Rights on Doosan Merger
- Doosan Group Is Likely To Cancel Its Restructuring Plans
Flow Dynamics from NPS Exercising Appraisal Rights on Doosan Merger
- If stocks close above the appraisal prices on the 10th, NPS will support the merger; otherwise, they’ll abstain to secure their appraisal rights.
- Due to cancellation risk hitting the ceiling, NPS will likely exercise half its position and start buybacks after the results.
- With both stocks heavily weighted in KOSPI 200, NPS is likely to opt for a tight buyback window, boosting chances for upward price action on Doosan’s shares in that period.
Doosan Group Is Likely To Cancel Its Restructuring Plans
- In the next several days, it is likely that the Doosan Group is likely to cancel its restructuring plan involving Doosan Enerbility, Doosan Bobcat, and Doosan Robotics.
- As a result of the sharp decline in share prices of major Doosan Group companies, the cost of appraisal rights may be too much for the Doosan Group.
- Despite the negative impact of recent political events in Korea, a cancellation of Doosan Group restructuring plan could have a near-term positive impact on all the major Doosan Group companies.
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