Kim Dong-sun, president and head of future strategy at Hanwha M&S. [Hanwha M&S]
Kim Dong-sun, president and head of future strategy at Hanwha M&S. [Hanwha M&S]

Kim Dong-sun, president and head of future strategy at Hanwha Machinery & Services Holdings, announced Monday that he will use 128.5 billion won ($96 million) of his personal funds to launch a tender offer for shares in the company.

Kim said he will purchase up to 16.06 million common shares of Hanwha M&S from existing shareholders between Monday and Nov. 2, at a price of 8,000 won per share. That represents a 27 percent premium over the stock's one-month average price of around 6,300 won, and a roughly 32 percent premium over Sunday's closing price of 6,080 won.

A tender offer allows a buyer to acquire shares from existing shareholders at a price above the market rate, typically with a set premium. The shares targeted in this offer represent approximately 19 percent of Hanwha M&S's total common stock outstanding.

Hanwha M&S said the tender offer was undertaken to enhance shareholder value and strengthen accountability among senior management, adding that it directly reflects shareholders' recent calls for new growth drivers and measures to support the share price.

The company said Kim's move simultaneously demonstrates his conviction in the future growth potential of the tech and lifestyle segments and his commitment to responsible management as the executive overseeing Hanwha M&S's overall future strategy.

The tender offer also comes in response to shareholder concerns raised at the company's first extraordinary general meeting last month, where investors voiced worries about the declining share price and the outlook for future growth. Kim intends to use this tender offer as a starting point for pursuing a range of measures to maximize shareholder returns and reinforce accountability in management.

"There are aspects in which the growth potential of Hanwha Group's tech and lifestyle segment has not been fully reflected in the share price," a Hanwha M&S official said. "We expect Kim's tender offer to serve as a positive signal to the market and shareholders, significantly boosting both shareholder value and corporate value."

Hanwha M&S, the holding company for Hanwha Group's tech and lifestyle segment, was established in August this year following a spinoff of those operations and listed on the KOSPI the same month. The tech segment comprises Hanwha Vision, Hanwha Semitech, Hanwha Momentum and Hanwha Robotics, while the lifestyle segment includes Hanwha Galleria, Hanwha Hotels & Resorts and Ourhome.

The tech and lifestyle segment plans to implement management strategies tailored to the characteristics of each business and its market environment under Hanwha M&S's leadership. The company particularly aims to identify synergies among its affiliates that can be developed into new business ventures.


korean@heraldcorp.com