325,000 additional shares acquired

114,000 won per share

Block deal set for Dec. 3

Personal stake to rise from 5.75% to 6.23%

'Strengthening responsible management'

An exterior view of the Hanjin Building in Sogong-dong, Seoul [Hanjin Group]
An exterior view of the Hanjin Building in Sogong-dong, Seoul [Hanjin Group]

Hanjin Group Chairman Cho Won-tae signed a contract Monday to purchase an additional 37 billion won ($27.7 million) worth of Hanjin KAL shares — the same day reports surfaced that Hoban Group had overtaken him as the airline holding company's largest shareholder. Once the transaction is completed, Cho's personal stake will rise from 5.75% to 6.23%, injecting fresh momentum into the shareholding battle over the top position that has swung toward Hoban Group.

Cho filed a securities transaction plan report with the Financial Supervisory Service Monday, disclosing a plan to acquire 325,000 ordinary shares of Hanjin KAL for approximately 37.05 billion won.

The planned purchase price is 114,000 won per share. Cho signed the share purchase agreement Monday and intends to acquire the shares through a block deal on Dec. 3. The transaction window runs through Jan. 1 next year. If market conditions make a block deal impractical, the purchase may proceed as an over-the-counter transaction instead.

If the deal closes as planned, Cho's personal holdings will increase from 3,869,612 shares (5.75%) to 4,194,612 shares (6.23%), a gain of 0.48 percentage points. In the regulatory filing, Cho stated the purpose of the purchase as "strengthening responsible management."

Earlier, on Aug. 4, Cho acquired 10,743 Hanjin KAL shares through an after-hours transaction for approximately 1.2 billion won. The purchase price at the time was 111,700 won per share.

The latest acquisition plan has drawn attention because it came amid reports of Hoban Group ascending to the top shareholder position in Hanjin KAL.

Earlier Monday, The Herald Business reported that Hoban Group had purchased additional Hanjin KAL shares, nudging its stake just above the roughly 20.6% held by Cho and his related parties. Hoban Group is understood to have claimed the top shareholder position roughly four years after acquiring a stake from private equity fund KCGI in 2022 to become the second-largest shareholder.

As of July, Hoban Group held a 20.15% stake in Hanjin KAL, just 0.42 percentage points behind the approximately 20.57% held by Cho's side. Once Cho's additional purchase is completed, the combined stake on his side will also expand, adding a new variable to the shareholding contest between the two parties.

Meanwhile, Hanjin KAL issued a clarification disclosure Monday in response to the reports of Hoban Group becoming the largest shareholder, saying it would issue a follow-up disclosure either when specific details are confirmed or by Dec. 1, whichever comes first.


kwater@heraldcorp.com