Doosan Enerbility withdraws plan to spin off subsidiary for merger with Doosan Robotics

Doosan Enerbility, Korea's major power plant builder, said Tuesday it will withdraw its plan to spin off its construction equipment supplier unit to merge it with Doosan Robotics Inc. as part of Doosan Group's broader restructuring plan.

Doosan Enerbility will not hold an extraordinary meeting of its shareholders on Thursday, which was set to decide on the spinoff and merger plan, the company said in a regulatory filing.

The cancellation of the meeting came as the stock prices of both Doosan Enerbility and Doosan Robotics plunged in recent days following the botched martial law declaration by President Yoon Suk Yeol last week, increasing the financial pressure on the companies.

"With a plunge in our stock price amid confusion in the market sparked by an abrupt change in the external environment, we have no choice but to cancel the extraordinary shareholders' meeting scheduled for Thursday," Doosan Enerbility President Park Sang-hyun said in a letter to its shareholders' posted on the company's website.

Doosan Bobcat had planned to spin off from its parent and become a wholly owned subsidiary of Doosan Robotics, the country's largest collaborative robot maker.

The plan was part of Doosan Group's broader business restructuring plan aimed at increasing the synergy between different companies under the group and securing future growth engines in clean energy, smart machine and semiconductors. (Yonhap)