Doosan's shares have surged, driven by expectations of acquiring SK Siltron and strong performance in its electronics division.
As of 2:09 PM on July 31, Doosan's stock was trading at 1,154,000 won, up 255,000 won (28.33%) from the previous trading day. The company even hit the upper limit early in the session.
Investor sentiment was boosted by reports that SK would hold a board meeting to discuss the potential sale of its stake in SK Siltron, a company that produces silicon wafers for semiconductors.
Doosan was selected as the preferred bidder for the acquisition of SK Siltron in December 2022 and has been negotiating the purchase price and transaction terms with SK. The sale involves a total of 70.6% of shares, which includes SK's 51% stake and a 19.6% stake from a total return swap (TRS) agreement. However, the board's approval and the finalization of the sales contract have yet to be confirmed.
The company's strong second-quarter performance also contributed to the stock price increase. Doosan reported a consolidated revenue of 5.6 trillion won for the second quarter, a 5% increase compared to the same period last year, while operating profit rose 38% to 488.4 billion won. Revenue and operating profit from its core business reached record highs of 765.2 billion won and 212.1 billion won, respectively.
Notably, the electronics division's revenue grew by 42% year-on-year to 676 billion won, driving the overall performance growth.
* This article has been translated by AI.
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