Kim Dong-sun raises Hanwha M&S tender offer to 26.2 million common shares
In short
Kim Dong-sun, president for future strategy at Hanwha Machinery & Services Holdings (Hanwha M&S), has raised his tender offer for the company's common shares by about 10 million, to 26,203,000 shares, according to a filing reported on 22 October. The price stays at 8,000 won per share. Outlets link the increase to Kim Dong-kwan and Kim Dong-won saying they will tender shares.
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Kim Dong-sun, president for future strategy at Hanwha Machinery & Services Holdings (Hanwha M&S), has decided to raise his tender offer for the company's common shares by about 10 million shares. According to the Financial Supervisory Service electronic disclosure system, he filed a correction setting the offer at 26,203,000 shares, Yonhap, Newsis and Seoul Economic Daily reported on 22 October. [ 1 , 2 , 3 ]
On 12 October, Kim announced that he would tender-buy 16.06 million common shares at 8,000 won each, citing shareholder value and stronger responsible management. Kim Dong-kwan, senior executive vice chairman of Hanwha Group, and Kim Dong-won, vice chairman of Hanwha Life, then said they would tender shares in the offer. Kim Dong-kwan will tender 6,762,000 shares and Kim Dong-won 3,381,000 shares, together 63% of the original offer size. [ 1 , 3 ]
Yonhap and Seoul Economic Daily said the increase is interpreted as a measure to guarantee general shareholders a chance to tender. Through the offer, Kim Dong-sun would acquire an additional 31% of the common shares. Seoul Economic Daily said the share of issued shares covered rises from 19% to 31% and that up to 209.6 billion won would be spent. [ 1 , 3 ]
The 8,000 won price is unchanged. According to Yonhap and Seoul Economic Daily, it is a 27% premium to the one-month average price of 6,300 won as of 12 October and a 32% premium to the 6,080 won close on the 8th. [ 1 , 3 ]
Why it matters
The larger offer would raise the stake Kim Dong-sun acquires to 31% of the common shares, from 19% in the original offer, according to Seoul Economic Daily. Outlets interpret the change as a way to guarantee ordinary shareholders a chance to tender.
Key facts
- Kim Dong-sun, president for future strategy at Hanwha M&S, filed a correction raising the tender offer to 26,203,000 common shares, about 10 million more than before. [ 1 , 2 , 3 ]
- The original offer, announced on 12 October, covered 16.06 million common shares at 8,000 won each. [ 1 , 3 ]
- Kim Dong-kwan, senior executive vice chairman of Hanwha Group, said he will tender 6,762,000 shares, and Kim Dong-won, vice chairman of Hanwha Life, said he will tender 3,381,000 shares. [ 1 , 3 ]
- Those two commitments equal 63% of the original offer size. [ 1 , 3 ]
- The 8,000 won price is a 27% premium to the one-month average of 6,300 won and a 32% premium to the 6,080 won close on the 8th. [ 1 , 3 ]
- The offer would cover 31% of issued common shares, up from 19%, and would cost up to 209.6 billion won. [ 3 ]
Confirmed by several sources
- A filing on the Financial Supervisory Service electronic disclosure system corrected the tender offer size to 26,203,000 common shares. [ 1 , 2 , 3 ]
- The price remains 8,000 won per share. [ 1 , 3 ]
- Kim Dong-kwan and Kim Dong-won said they will tender 6,762,000 and 3,381,000 shares respectively. [ 1 , 3 ]
Still unclear
- Why the offer was enlarged. Yonhap and Seoul Economic Daily say the increase is interpreted as a step to guarantee general shareholders a chance to tender after the two executives said they would tender; the filing's own stated reason is not given in the documents.
- Cost and share-of-capital figures of the enlarged offer. Only Seoul Economic Daily gives the up-to-209.6-billion-won cost and the 19% to 31% change in the share of issued shares.