Largest Shareholder Chairman Jeong Seok-hyun Sells 2.5 Million Shares in Block Deal... Stock Price More Than Doubles This Year
[Asia Economy Reporter Park So-yeon] Jung Seok-hyun, chairman of Susan Heavy Industries, has sequentially sold large amounts of shares in Susan Heavy Industries and its affiliate Susan INT this year, converting approximately 20 billion KRW into cash. Susan Heavy Industries has been classified as a "Jeong Se-gyun theme stock," while Susan INT is categorized as a "Lee Jae-myung theme stock," both of which have surged recently.
According to the Financial Supervisory Service's electronic disclosure system on the 4th, Susan Heavy Industries announced yesterday that Jung Seok-hyun, chairman of Susan Heavy Industries, disposed of 2.5 million shares of Susan Heavy Industries through a block deal (off-hours large-volume trading).
This amount corresponds to 4.63% of the total issued shares. The selling price per share was 3,752 KRW, about an 8.5% discount from the previous closing price (4,100 KRW), totaling approximately 9.4 billion KRW. As a result of this block deal, Chairman Jung's shareholding ratio decreased from 23.17% to 18.54%.
Chairman Jung is the largest shareholder of Susan Heavy Industries. Susan Heavy Industries is a mid-sized company producing construction heavy equipment and special vehicles. Since Chairman Jung is known as a relative of Prime Minister Jeong Se-gyun, the company is classified as a "Jeong Se-gyun theme stock." The stock price of Susan Heavy Industries, which had maintained around 1,500 KRW for several years, surged this year, reaching 3,985 KRW as of the closing price on the 3rd.
On the 2nd of last month, Chairman Jung also sold 200,000 shares (2.96%) of Susan INT off-hours. The price per share was 46,552 KRW, realizing a total of 9.3 billion KRW. On the same day, a special related party, Jung Eun-joo, also sold 50,000 shares (0.74%) off-hours.
Susan INT is classified as a "Lee Jae-myung theme stock." This is because Lee Hong-gu, chairman of the Korea Software Association and former co-chairman of Gyeonggi Province Governor Lee Jae-myung’s campaign support committee, was appointed as CEO in March last year.
The stock price of Susan INT, which had hovered between 4,000 KRW and 6,000 KRW for several years, also rose sharply this year, reaching a high of 56,300 KRW. As of the closing price on the 3rd, it was 38,800 KRW.
Additionally, Susan Industry, in which Chairman Jung holds an 85% stake, sold 2.5 million shares (4.63%) of Susan Heavy Industries off-hours on the 16th of last month. The price per share was 4,457 KRW, totaling 11.1 billion KRW. Susan Industry paid dividends of 1.6 billion KRW in 2017, 1.6 billion KRW in 2018, and 4 billion KRW in 2019.
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