Kim Dong-seon, CEO of Hanwha Machinery & Services Holdings (Hanwha M&S), has decided to increase the tender offer for common shares by approximately 10 million shares.
According to a filing with the Financial Supervisory Service on October 22, Kim announced that he would revise the tender offer amount from 16.06 million shares to 26.203 million shares, as disclosed on October 12.
The tender offer amount has increased from 19% to about 31% of the total common shares, while the purchase price remains at 8,000 won, and the tender offer period is unchanged until November 2. With the increase in the tender offer, approximately 210 billion won of Kim's personal funds will be invested.
This additional tender offer was decided after Kim Dong-kwan, Vice Chairman of Hanwha Group, and Kim Dong-won, Vice Chairman of Hanwha Life, agreed to participate in the tender offer. Vice Chairman Kim Dong-kwan plans to subscribe to 6.762 million shares (8%), while Vice Chairman Kim Dong-won will subscribe to 3.381 million shares (4%).
The combined subscription amount from the two vice chairmen totals 10.143 million shares, accounting for 63.2% of the existing tender offer amount. This has raised concerns that the opportunity for general minority shareholders to participate in the tender offer may be limited.
To address these concerns and ensure selling opportunities for general shareholders, Kim has expanded the tender offer amount from the previous 19% to 31%.
A Hanwha M&S official stated, "Concerns were raised that general minority shareholders who wish to participate in the tender offer might have their rights infringed, prompting Kim to significantly increase the tender offer amount. This decision aligns with the intent of the tender offer to provide all shareholders with the opportunity to sell their shares under the same conditions."
The tender offer reflects shareholders' concerns about stock price declines and future growth potential raised during Hanwha M&S's first shareholders' meeting last month. Kim aims to demonstrate responsible management as a major shareholder and executive while enhancing shareholder value.
Since the announcement of the tender offer, the stock price has shown an upward trend. On October 21, Hanwha M&S's closing price was 7,440 won, up 22.37% from 6,080 won just before the tender offer announcement.
The tender offer declaration is positively impacting market confidence and shareholder value. As of October 21, Hanwha M&S's common stock closed at 7,440 won, reflecting a 22.37% increase compared to the price before the tender offer announcement (6,080 won).
Notably, this month, Hanwha M&S recorded the highest increase among KOSPI 200 constituents. The closing price of Hanwha M&S on October 21 (7,440 won) represents a 30.3% increase compared to the closing price on September 30 (5,710 won). In contrast, the KOSPI 200 index fell by 17.64% during the same period.
A Hanwha M&S official remarked, "Kim's additional purchase not only broadly guarantees selling opportunities for general shareholders but also further strengthens the commitment to responding to shareholder voices and responsible management, which was the starting point of this tender offer. We will continue to explore various measures to enhance shareholder and corporate value."
Meanwhile, Hanwha M&S, the holding company for the Tech & Life division of Hanwha Group, was established in August this year following the spin-off of the Tech & Life division and was listed on the stock market in the same month. The Tech division includes Hanwha Vision, Hanwha Semitech, Hanwha Momentum, and Hanwha Robotics, while the Life division comprises Hanwha Galleria, Hanwha Hotels & Resorts, and Our Home.
* This article has been translated by AI.
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