Summary
- Hanwha M&S shares were trading at 7,740 won, up 10.57%.
- Kim Dong-sun said he will buy 3.38 million shares at 8,000 won per share through a second tender offer to expand his control.
- Once the second tender offer is completed, Kim’s stake will rise from 32.99% to 36.99%, further expanding his management influence.
Forecast Trend Report by Period
Hanwha Machinery & Service Holdings, or Hanwha M&S, climbed after Kim Dong-sun, the company’s president and head of future strategy, moved to acquire additional shares.
As of 10:46 a.m. on November 9, Hanwha M&S was trading at 7,740 won ($5.62), up 10.57% from the previous session. Investor sentiment improved after Kim unveiled plans to expand his control through a second tender offer.
A filing with the Financial Supervisory Service showed Kim plans to buy an additional 3.38 million Hanwha M&S shares from November 9 through November 30. That is about 4% of the company’s outstanding shares. The tender offer price is 8,000 won ($5.80) a share. The total planned purchase amounts to about 27 billion won ($19.6 million).
The second tender offer is intended to acquire shares he did not secure in the first round. Kim plans to use personal funds to raise his stake and strengthen his management responsibility.
Kim bought 22,975,541 Hanwha M&S shares in the first tender offer, which ran from October 12 to November 2. That gave him a 32.99% stake, surpassing Hanwha Energy’s 23.94% and making him the company’s largest shareholder.
The first tender offer, however, fell short of its original target of 26,203,000 shares. Kim is moving to buy more just a week after the first offer ended as he seeks to secure the remaining target amount.
If the second tender offer is completed as planned, Kim’s stake in Hanwha M&S will rise to 36.99% from 32.99%. That would further expand his influence over the company’s management.
Suehyeon Lee
