Shares of Hanul Semiconductor, a semiconductor inspection equipment company, have sharply declined. This drop is attributed to a series of announcements regarding the extension of stock collateral loans, which have dampened investor sentiment.
According to the Korea Exchange, as of 2:34 PM on November 13, Hanul Semiconductor's stock was trading at 5,090 won, down 1,600 won (23.92%) from the previous trading day. During the session, the stock fell as low as 4,805 won.
The decline in Hanul Semiconductor's stock appears to be linked to recent disclosures from its largest shareholder regarding stock collateral loans, which have heightened investor caution. Hanul Materials Science, the largest shareholder, has provided all 1.43 million shares (21.44% stake) of Hanul Semiconductor as collateral. The total amount of related borrowings is 6.7 billion won, with the collateral value set at 8.71 billion won.
The day before, an announcement was made regarding the extension of the stock collateral loan's maturity. The termination date of the stock collateral contract with Sangsangin Plus Savings Bank has been extended from November 12 to December 14. While this is not a new collateral arrangement, the fact that the entire stake of the largest shareholder is tied up as collateral could weigh on the stock price.
The scale of collateral provided by the largest shareholder and related parties is even larger. According to a recent report on large shareholders, the total number of shares provided as collateral by the largest shareholder and related parties amounts to 2,033,306 shares, representing 28.41% of the issued shares. Related parties have also provided additional shares as collateral to guarantee the largest shareholder's loan.
Concerns about potential overhang from convertible bonds are also emerging. On October 30, Hanul Semiconductor adjusted the conversion price for its third and fourth series of convertible bonds from 10,205 won to 8,389 won. As a result, the number of shares eligible for conversion has increased from 587,947 to 715,222 shares for each series. The third series of convertible bonds will be eligible for conversion starting November 30.
According to the Korea Exchange, as of 2:34 PM on November 13, Hanul Semiconductor's stock was trading at 5,090 won, down 1,600 won (23.92%) from the previous trading day. During the session, the stock fell as low as 4,805 won.
The decline in Hanul Semiconductor's stock appears to be linked to recent disclosures from its largest shareholder regarding stock collateral loans, which have heightened investor caution. Hanul Materials Science, the largest shareholder, has provided all 1.43 million shares (21.44% stake) of Hanul Semiconductor as collateral. The total amount of related borrowings is 6.7 billion won, with the collateral value set at 8.71 billion won.
The day before, an announcement was made regarding the extension of the stock collateral loan's maturity. The termination date of the stock collateral contract with Sangsangin Plus Savings Bank has been extended from November 12 to December 14. While this is not a new collateral arrangement, the fact that the entire stake of the largest shareholder is tied up as collateral could weigh on the stock price.
The scale of collateral provided by the largest shareholder and related parties is even larger. According to a recent report on large shareholders, the total number of shares provided as collateral by the largest shareholder and related parties amounts to 2,033,306 shares, representing 28.41% of the issued shares. Related parties have also provided additional shares as collateral to guarantee the largest shareholder's loan.
Concerns about potential overhang from convertible bonds are also emerging. On October 30, Hanul Semiconductor adjusted the conversion price for its third and fourth series of convertible bonds from 10,205 won to 8,389 won. As a result, the number of shares eligible for conversion has increased from 587,947 to 715,222 shares for each series. The third series of convertible bonds will be eligible for conversion starting November 30.
* This article has been translated by AI.
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