Bando Construction "Shareholding Increased from 6.28% to 8.28%" Disclosure
[Asia Economy Reporter Yu Je-hoon] The management dispute within Hanjin Group is escalating into a turbulent conflict. This follows the fourth-largest shareholder, Bando Construction, increasing its stake and changing its investment purpose from simple investment to 'management participation.'
According to the Financial Supervisory Service's electronic disclosure system on the 10th, Bando Construction announced that it expanded its stake in Hanjin KAL to 8.28% as of December 26 last year through three companies including Daeho Development. This is a 2.0% increase from the previous 6.28% stake.
At the same time, Bando Construction also disclosed that it is changing its investment purpose from simple investment to management participation. Since changing the investment purpose to management participation requires returning short-term trading profits realized within six months, Bando Construction's announcement is interpreted as a declaration of its intention to actively intervene in the management dispute among the Hanjin family, including Chairman Cho Won-tae of Hanjin Group (6.52%) and former Korean Air Vice President Cho Hyun-ah (6.49%).
Earlier, Bando Construction attracted attention when it purchased a 5% stake in Hanjin KAL last October. While some viewed it as a 'white knight' for the Hanjin family based on the friendship between the late Chairman Cho Yang-ho of Hanjin Group and Chairman Kwon Hong-sa of Bando Construction, others found it difficult to discern their true intentions.
As Bando Construction expands its influence, the management dispute within the Hanjin family is plunging into turmoil. Chairman Cho, former Vice President Cho, Jeong Myung-hee, advisor of Jungseok Enterprise (5.31%), and Executive Director Cho Hyun-min of Hanjin KAL (6.47%) hold similar stakes, and the outcome of the management control could depend on whose side Bando Construction supports.
An official from a national airline stated, "Considering institutional investors holding less than 5% stakes, such as the National Pension Service (4.11%), the direction of the March shareholders' meeting could change depending on alliances among major shareholders," adding, "Bando Construction could also become a casting vote that decides the outcome."
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