Vice President Kim Dong-seon Secures 16.85% Stake in Hanwha Galleria

Public Offering of 34 Million Shares at 1,600 Won Per Share

Kim Dong-sun, the third son of Hanwha Group Chairman Kim Seung-yeon and Vice President of Hanwha Galleria Future Vision Division, increased his stake to 16.85% by purchasing approximately 28.16 million shares of Hanwha Galleria worth 45 billion KRW through a tender offer.

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

On the 13th, Hanwha Galleria announced that Vice President Kim acquired 28,164,783 shares (82.84%) out of the 34 million shares tendered at 1,600 KRW each during the 20-day tender offer period from the 23rd of last month to the 11th of this month. The largest shareholder is Hanwha with 36.31%, Vice President Kim is the second largest shareholder, and Hanwha Solutions, holding 1.39%, is the third largest shareholder.

The stock price of Hanwha Galleria rose to the mid-1,500 KRW range during the tender offer but closed at 1,410 KRW on the 11th, not exceeding the tender offer price of 1,600 KRW. However, it is analyzed that Vice President Kim could not purchase all the target shares because shareholders judged that the stock price would rise further and did not respond more to the tender offer.

To finance this tender offer, Vice President Kim secured a loan of approximately 54.4 billion KRW from Korea Securities Finance by pledging about 1.26 million Hanwha common shares he owns. It is expected that he will purchase the remaining shares, which he could not accumulate as planned, through subsequent on-market purchases. Due to this, Hanwha Galleria’s stock price rose 6.67% to 1,504 KRW the previous day but closed down 1.60% at 1,480 KRW on the day.