"Daemyung Sono Lacks Expertise in Aviation"… T'way Air's Determination to Retain Management Rights

T'way Air Sends Letter to Minority Shareholders' Coalition
Reveals First Official Position on Management Rights Dispute

T'way Air has expressed doubts about the expertise of Daemyung Sono Group, which is attempting to acquire management rights, and stated that it will actively respond.

According to industry sources on the 12th, T'way Air sent a letter to the small shareholders' coalition the day before, stating, "We will prioritize protecting shareholder value and respond to Daemyung Sono Group's attempt to acquire management rights."

It added, "If Daemyung Sono Group's acquisition of management rights and a large-scale rights offering materialize, losses due to dilution of small shareholders' equity and stock price decline are expected," and "we will satisfy the right to know of all shareholders by disclosing the progress at an appropriate time and scope."

Regarding Daemyung Sono Group's demands for management improvement, T'way Air rebutted, "Through improving financial structure and establishing short- and mid-to-long-term management strategies, aircraft maintenance and safety issues can be properly managed and profitability strengthened." Last month, Daemyung Sono Group demanded the current management team, led by the largest shareholder, to step down and requested funding through a rights offering.

T'way Air also pointed out that Daemyung Sono Group lacks expertise in the aviation industry, saying, "If Daemyung Sono Group acquires management rights, there is concern that aircraft maintenance and safety issues could worsen." It added, "We are actively preparing effective improvement measures regarding aircraft maintenance and safety, and making every effort necessary to prioritize aviation safety."

This is the first time T'way Air has revealed a specific stance on the management rights dispute.

Previously, the small shareholders' coalition gathered through Act demanded ▲ compliance with a fair and transparent acquisition process through a public tender offer ▲ disclosure of acquisition purpose and long-term management strategy ▲ financial plans considering shareholder value protection and prevention of infringement on small shareholders' rights.

Currently, T'way Air's largest shareholder is T'way Holdings and Yerimdang, holding 30.09% of shares. Daemyung Sono Group is the second-largest shareholder with 26.77%. Since the shareholding gap between the first and second largest shareholders is only about 3 percentage points, the actions of small shareholders holding the remaining 40% of shares are considered a key variable.