[Special Stock] Hanon Systems Hits Consecutive Lows Ahead of Major Shareholder Change

Hankook Tire to Acquire Soon via SPA Contract
Controversy Over 'Control Premium' Unavailable to Minority Shareholders

The stock price of Hanon Systems, which is on the verge of a major shareholder change, continues to show weakness. It has recorded a 52-week low for four consecutive trading days.

As of 9:54 AM on the 15th, Hanon Systems is trading at 3,730 KRW, down 0.67% (25 KRW) from the previous trading day. Early in the session, it hit a low of 3,710 KRW, breaking its 52-week low again. After hitting an intraday low of 3,730 KRW on the 10th, breaking the 52-week low of 3,800 KRW recorded in August, Hanon Systems has continued to lower its bottom by recording a 52-week low for four consecutive trading days from the 10th to the present.

Hanon Systems is about to undergo a change in its largest shareholder. Hankook Tire is set to soon sign a Stock Purchase Agreement (SPA) with the private equity fund (PEF) operator Han & Company, the current largest shareholder. Hankook Tire plans to purchase 122,774,000 shares of Hanon Systems held by Han & Company at 10,000 KRW per share. Including the 144,960,000 newly issued shares priced at 4,139 KRW per share, Hankook Tire’s stake in Hanon Systems will exceed 50%. Industry insiders expect the SPA contract between the two companies to be completed as early as this month.