Kim becomes largest shareholder after first tender offer

Combined stake to reach 79.51% if second offer succeeds

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

Hanwha Machinery & Services Holdings (Hanwha M&S) jumped more than 9 percent in early trading Monday after Kim Dong-sun, the company's president and head of future strategy, announced a second tender offer for its shares.

According to Korea Exchange, Hanwha M&S was trading at 7,680 won as of 9:44 a.m. Monday, up 680 won, or 9.7 percent, from the previous session.

Kim disclosed that he will conduct a tender offer for 3.38 million common shares of Hanwha M&S from Monday through Nov. 30. The move follows a previous tender offer last month in which Kim fell short of his target volume.

The offer price remains unchanged from the first tender offer at 8,000 won per share, putting the total purchase amount at around 27 billion won ($20.1 million).

In the first tender offer, which ran from Oct. 12 through Nov. 2, Kim acquired 22,975,541 common shares.

Although the result fell short of the original target of 26,203,000 shares, the purchase raised Kim's personal stake to 32.99 percent, making him the largest shareholder. Including related parties, the combined common share stake stands at 75.51 percent.

If the current tender offer proceeds as planned, Kim's individual stake will rise to 36.99 percent, with the combined stake including related parties reaching 79.51 percent.

Kim said the tender offer aims to acquire additional shares roughly equivalent to the shortfall from the first offer, in order to strengthen management accountability and enhance shareholder value. He added that protecting minority shareholders and providing an additional opportunity to sell amid the recent sharp decline in the stock market are also among the offer's objectives.

Hanwha M&S serves as the holding company for Hanwha Group's tech and lifestyle divisions. It was established in August following a spinoff of those divisions and listed on the Kospi the same month. The tech division includes Hanwha Vision, Hanwha Semitech, Hanwha Momentum and Hanwha Robotics, while the lifestyle division includes Hanwha Galleria, Hanwha Hotels & Resorts and Ourhome.


yuni@heraldcorp.com