SEOUL– Shareholders of Doosan Corp., the holding company of South Korean conglomerate Doosan Group, on Friday approved a plan to spin off the forklift business division, the company said.
During their extraordinary meeting, Doosan’s shareholders passed the proposal to spin off the division and set up a wholly owned subsidiary on July 1, Doosan said in a regulatory filing.
The newly established company was named Doosan Industrial Vehicle Co.
Under the 750 billion-won (US$665 million) deal with Doosan Bobcat Co., which was signed in March, the whole stake in Doosan Industrial Vehicle will be transferred to Doosan Bobcat, Doosan said.
Doosan Bobcat is a small-sized construction equipment affiliate of the country’s top power equipment maker, Doosan Heavy Industries & Construction Co.
Doosan’s forklift business dominates the country’s market with a 54 percent market share.
The spinoff was one of the measures to improve the financial health of cash-strapped Doosan Heavy Industries & Construction.
Source: Yonhap News Agency