Kim Dong-sun holds 32.99% stake in common shares

'Will continue efforts to enhance corporate, shareholder value'

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 (Hanwha M&S), has used personal funds to become the company's largest shareholder, laying the groundwork for stable, accountable management and addressing shareholder concerns.

According to DART, the Financial Supervisory Service's electronic disclosure system, Kim purchased 22,975,541 shares through a tender offer that ran for 22 days from Oct. 12 to Monday. At a purchase price of 8,000 won per share, the total acquisition cost came to approximately 188.3 billion won ($140 million).

As a result, Kim's common share holdings grew from 4,908,642 shares to 27,884,183 shares, with the stake expanding from 5.81 percent to 32.99 percent. Kim has now surpassed Hanwha Energy, which holds 23.94 percent, to become the largest shareholder. Including preferred shares, Kim's stake stands at 25.77 percent.

Kim launched the tender offer in response to shareholder concerns raised at the company's first general shareholders' meeting in September about the falling share price and future growth prospects. The move was driven by a commitment to accountable management and a desire to enhance shareholder value.

Kim initially announced on Oct. 12 a plan to acquire 16.06 million shares, or about 19 percent of all common shares. After Kim Dong-kwan, senior vice chairman of Hanwha Group, and Kim Dong-won, vice chairman of Hanwha Life Insurance, expressed their intention to tender their shares, Kim expanded the purchase volume on Oct. 22 to give more ordinary shareholders the opportunity to sell and to reaffirm the commitment to accountable management.

Following the tender offer, Kim Dong-kwan's common share holdings fell from 8,919,932 shares to 2,157,932 shares, with the stake dropping from 10.55 percent to 2.55 percent; his preferred share stake of 4.43 percent remains unchanged. Kim Dong-won's common shares decreased from 4,908,642 shares, or 5.81 percent, to 1,527,642 shares, or 1.81 percent.

The combined common share stake held by related parties rose from 60.32 percent to 75.51 percent, while the stake including preferred shares climbed from 51.06 percent to 62.92 percent. The holdings of other related parties — Hanwha Energy at 23.94 percent, Chairman Kim Seung-youn at 12.24 percent, and Bugil Hagwon at 1.98 percent — remained unchanged.

The tender offer further strengthens the foundation for accountable management at Hanwha M&S, which leads the group's tech and lifestyle businesses. "With the successful completion of the tender offer, we are well positioned to fulfill the purpose of this exercise — easing shareholder concerns and reinforcing accountable management," a Hanwha M&S official said. "We will continue to pursue a range of efforts to enhance corporate and shareholder value and uphold our commitment to responsible management."


spa@heraldcorp.com