Hanwha M&S rises 24% as Kim Dong-seon launches tender offer for 19% stake
In short
Hanwha M&S shares closed 24.01% higher at 7,540 won on October 12 after executive Kim Dong-seon (김동선) announced a tender offer for 16.06 million shares at 8,000 won each. Buying the full target amount would raise his stake from 5.81% to 24.81%, making him the company's largest individual shareholder.
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Hanwha M&S shares closed 24.01% higher at 7,540 won on October 12 after executive Kim Dong-seon (김동선) announced a tender offer, Newsis reported. The company said Kim would use personal funds to buy 16.06 million shares from existing shareholders at 8,000 won each. The targeted shares represent about 19% of the company, and most reports give the offer period as October 12 through November 2. [ 10 , 12 , 17 ]
Korea Economic Daily reported that the purchase would cost up to 128.48 billion won. If Kim acquires the full target, his holding would rise from 5.81% to 24.81%, exceeding Hanwha Energy's 23.94% stake and making him the largest individual shareholder. The combined holding of Kim and related parties would rise from 60.32% to 79.32%. Chosun Ilbo reported that NH Investment & Securities was managing the offer and that settlement was scheduled for November 4. [ 2 , 3 ]
The company said the offer was intended to improve shareholder value and strengthen management accountability. According to Newsis, it reflected concerns about declining share prices and future growth raised at the company's first extraordinary shareholder meeting the previous month. Bloter reported that Kim planned to buy all tendered shares if applications fell below the target and to purchase proportionally if they exceeded it. [ 4 , 10 ]
Hanwha M&S was established in August through a spin-off of Hanwha's technology and lifestyle businesses and listed that month, Hankook Ilbo reported. Kim oversees its future strategy. Shares had risen more than 23% in early trading on October 12, according to Yonhap. Newsis reported that they continued rising in the after-market, trading at 7,630 won at 4:23 p.m., up 25.49%. [ 5 , 16 , 17 ]
Why it matters
The offer would increase Kim's direct stake and lift the combined holding of him and related parties from 60.32% to 79.32% if completed as planned. The company said it aimed to strengthen management accountability and improve shareholder value.
Key facts
- Hanwha M&S closed October 12 at 7,540 won, up 24.01%, according to Newsis. [ 17 ]
- Kim offered to buy 16.06 million shares, representing 19% of the company's shares, at 8,000 won each. [ 3 , 5 , 10 ]
- Most reports give the offer period as October 12 through November 2. [ 2 , 3 , 5 , 12 ]
- Korea Economic Daily reported a maximum purchase value of 128.48 billion won. [ 2 ]
- Buying the full target would raise Kim's stake from 5.81% to 24.81%, above Hanwha Energy's 23.94%. [ 2 , 3 , 15 ]
- The combined stake of Kim and related parties would increase from 60.32% to 79.32% if the offer is completed as planned. [ 2 , 5 , 15 ]
- NH Investment & Securities is managing the offer, with settlement on November 4, Chosun Ilbo reported. [ 3 ]
Confirmed by several sources
- Kim announced an offer for 16.06 million Hanwha M&S shares at 8,000 won each. [ 3 , 5 , 10 ]
- The offer targets about 19% of the company and would raise Kim's stake to 24.81% if fully subscribed. [ 2 , 3 , 5 ]
- The combined stake of Kim and related parties would rise to 79.32% if completed as planned. [ 2 , 5 , 15 ]
- Hanwha M&S shares rose about 24% on October 12. [ 14 , 17 , 18 , 19 ]
Still unclear
- The number of shares ultimately acquired remains unknown. The offer is ongoing, and the projected holdings depend on the amount tendered.
- The supplied reports differ on the previous closing price and the offer deadline. Most give a prior close of 6,080 won, while Yonhap's early report gives 6,110 won; Maeil Business's early text says November 4, while other reports give November 2 and Chosun Ilbo identifies November 4 as settlement.