Hanwha's Third Son Kim Dong-sun Announces Tender Offer for Galleria Shares Worth 54.4 Billion KRW

Public Tender Offer for 34 Million Common Shares
"Strengthening Responsible Management... Enhancing Business Competitiveness"

Kim Dong-sun, the third son of Kim Seung-yeon, Chairman of Hanwha Group, and Vice President in charge of Future Vision at Hanwha Galleria, is set to conduct a public tender offer for treasury shares worth 54.4 billion KRW.

According to the Financial Supervisory Service's electronic disclosure system (DART) on the 23rd, Vice President Kim will initiate a public tender offer for 34 million common shares of Hanwha Galleria from today until July 11. The tender offer price is 1,600 KRW per common share.

Kim Dong-seon, Executive Vice President of Future Vision at Hanwha Galleria. [Photo by Hanwha Galleria]

The tender offer price of 1,600 KRW is 22.8% higher than Hanwha Galleria's closing price of 1,303 KRW on the previous day. It is also about 34% higher compared to the average closing price of 1,190 KRW over the past month.

The funds to be used for this tender offer amount to approximately 54.4 billion KRW, and Vice President Kim borrowed funds using Hanwha shares as collateral to finance the tender offer.

Hanwha Galleria explained the purpose of this tender offer as "to strengthen responsible management together with the largest shareholder and related parties," adding that "it aims to establish a swift and efficient decision-making system to enhance the business competitiveness of the target company and ultimately increase shareholder value."

The planned tender offer volume of 34 million shares corresponds to 17.5% of the total common shares. If the tender offer succeeds, Vice President Kim will hold a total of 19.8% of the shares, including the 2.3% stake he currently owns. Currently, the largest shareholder of Hanwha Galleria is Hanwha (36.31%), the second largest is Vice President Kim Dong-sun (2.32%), and the third largest is Hanwha Solutions (1.39%).

The combined shareholding of Hanwha, Vice President Kim Dong-sun, and Hanwha Solutions currently stands at 40.02%. If the tender offer is successfully completed, their total shareholding will increase to 57.5%, with Vice President Kim's stake rising to 19.86%.