Hanjin Kal's preferred shares reached their upper limit on November 9, continuing a sharp upward trend. The stock price is being driven by heightened expectations of a management dispute between Hoban Group and Hanjin Group Chairman Cho Won-tae.
According to the Korea Exchange, as of 9:25 a.m. on November 9, Hanjin Kal's preferred shares were trading at 104,700 won, up 24,100 won (29.90%) from the previous trading day.
Since closing at 26,300 won on October 30, the shares have skyrocketed by 206.4% to 80,600 won on November 6. Including today's gains, the total increase since October 30 is approximately 298.1%. Notably, the stock has hit its price limit on November 3, 5, and 6, continuing its rapid ascent.
The surge in stock price is linked to the ongoing share competition surrounding Hanjin Kal. On November 4, Hoban Construction and three other entities increased their stake in Hanjin Kal to 20.69%, surpassing the combined stake of Chairman Cho and related parties, which stands at 20.58%, resulting in a change of the largest shareholder.
In response, Chairman Cho has also sought to increase his stake. On November 2, he signed a contract to purchase 325,000 common shares of Hanjin Kal at 114,000 won per share. The transaction, valued at 37.05 billion won, would raise his stake to 21.07%, allowing him to regain the lead over Hoban Group.
However, it is important to note that Hanjin Kal's preferred shares do not carry voting rights, which means they are not directly beneficial in the management competition. With approximately 540,000 shares issued, the limited number could lead to increased volatility if buying pressure intensifies. In fact, trading volumes on November 4 and 5 exceeded the total number of issued shares, with approximately 1.16 million and 990,000 shares traded, respectively.
While expectations of a management dispute are driving short-term stock price increases, it is crucial to distinguish between share competition and actual changes in corporate value, given the lack of voting rights associated with preferred shares.
* This article has been translated by AI.
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