[Featured Stock] Korea McNulty Surges 20% on News of Major Shareholder Considering Stake Sale

The KOSPI opened at 2441.21, up 14.32 points (0.59%) from the previous trading day, on the 30th at the Hana Bank dealing room in Jung-gu, Seoul. In the Seoul foreign exchange market, the won-dollar exchange rate started at 1346.0 won, down 4.4 won. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Ji Yeon-jin] Hankook McNulty is soaring nearly 20% intraday on the 30th following news of the largest shareholder considering selling their stake.

As of 10:04 AM on the same day, Hankook McNulty was trading at 8,120 KRW, up 19.41% (1,320 KRW) compared to the previous trading day.

Earlier, Asia Economy reported that Hankook McNulty recently sent a "Hankook McNulty M&A Proposal" to asset management companies and private equity funds (PEFs) regarding the sale of the major shareholder's stake. The document is a simple 3-page proposal containing M&A details, not a full investment memorandum (IM).

An investment banking industry insider said, "It does not take the form of an official document but seems to have been sent to asset managers or PEFs to gauge preliminary interest and see if there are buyers in the market," adding, "It should be seen as the company starting the process to appear as a sale candidate in the M&A market."

According to the proposal, the sale target includes 29.01% (3.2 million shares) held by the largest shareholder Lee Eun-jung and 24.48% (2.701 million shares) held by the second-largest shareholder Ko Han-jun, totaling 53.49% (5.901 million shares). Hankook McNulty hopes to sell at 10,167 KRW per share. Converted, the simple sale (transaction) size reaches the 60 billion KRW range.

Industry observers believe that even if Hankook McNulty officially enters the M&A market, the likelihood of attracting many buyers is low due to unfavorable market conditions. Considering the current contraction in the M&A market, the asking price by Hankook McNulty may be burdensome. Hankook McNulty has 11,031,483 listed shares with a par value of 500 KRW. As of the 29th, the market capitalization was 75 billion KRW.