[Hot Stock] T'way Holdings Soars 22% on News of Daemyung Sono Acquisition

Hotel and resort company Daemyung Sono Group is showing strong gains in both T'way Holdings and T'way Air stocks early on the 27th following news of its acquisition of low-cost carrier (LCC) T'way Air.

Yonhap News

According to the Korea Exchange, as of 9:32 a.m., T'way Holdings' stock price was trading at 869 KRW per share, up 22.57% from the previous close. Shortly after the market opened, it surged to as high as 921 KRW per share. At the same time, T'way Air was recording gains in the 3% range.

This buying momentum is attributed to the stock purchase agreement signed after the market closed the previous day, in which Sono International, the holding company of Daemyung Sono Group, acquired a 46.26% stake in T'way Holdings held by Yerimdang and the owner family for 250 billion KRW. The acquisition price per share was 4,776 KRW, significantly higher than the intraday limit price of 921 KRW recorded that day.

As a result, Daemyung Sono Group will secure management rights over T'way Air. T'way Holdings is the largest shareholder of T'way Air, holding a 28.02% stake. With this stock acquisition, Daemyung Sono Group will hold a total of 54.79% of T'way Air shares, including its existing 26.77% stake.

Meanwhile, stocks of Yerimdang and Daemyung Sono Season are declining. Yerimdang is trading at 2,730 KRW, down 3.36% from the previous close, and Daemyung Sono Season is down 2.19% at 1,114 KRW.