Hanwha Delays Ourhome Acquisition to Next Month Due to Overseas Merger Approval Hold-Up

Delay in Vietnamese Government’s Approval for Business Combination
"First Transaction Expected to Be Completed Around Mid Next Month"

The acquisition of a stake in the group catering company Ourhome by Hanwha Hotels & Resorts, which was initially scheduled to be completed by the end of this month, will be delayed by about a month. This delay is due to the fact that the Vietnamese government’s approval for the business combination, required for Ourhome’s overseas catering operations in Vietnam, is taking longer than expected.

According to industry sources on April 29, the process for Hanwha Hotels & Resorts to acquire a stake in Ourhome is now expected to be postponed until around the middle of next month. The original plan was to complete the first stock purchase agreement transaction by the end of the day.

Ourhome Magok Food Research Center. Photo by Ourhome

A representative from Hanwha Hotels & Resorts stated, "The schedule has been delayed slightly as procedures such as overseas government approval for the business combination are taking longer than initially expected," and added, "Once final approval is granted by the Vietnamese government, we plan to complete the stake acquisition in May."

Hanwha Hotels & Resorts, under the leadership of Kim Dongseon, Executive Vice President of Future Vision at Hanwha Galleria and Hanwha Hotels & Resorts and the third son of Hanwha Group, signed a stock purchase agreement in February for a 58.6% stake in Ourhome owned by the owner family, including former Vice Chairman Koo Bonseong and Chairwoman Koo Mihyun, the eldest son and daughter. The acquisition amount is 869.5 billion KRW. Through the first stock purchase agreement transaction, Hanwha will complete the acquisition of a 50.6% stake, with the remaining 8.0% held by former Vice Chairman Koo Bonseong to be purchased at a later date.

Previously, the Fair Trade Commission completed its review of the business combination between Hanwha Hotels and Ourhome last week. The commission reportedly approved the merger, judging that there is little overlap in the business areas of Hanwha Hotels and Ourhome and that the combination would not restrict competition in terms of market share.

Ourhome is a company in which more than 98% of the shares are owned by the children (one son and three daughters) of the late Koo Ja-hak, former chairman of Ourhome and grandson of the late Koo In-hwoi, founder of LG Group. Unlike the eldest son and daughter, who agreed to sell their shares to Hanwha Hotels, the youngest daughter, former Vice Chairwoman Koo Jieun, and the second daughter, Koo Myeongjin, have opposed the sale. It is reported that at the regular shareholders’ meeting held on March 27, former Vice Chairwoman Koo Jieun pointed out that when Ourhome shareholders signed the stock purchase agreement with Hanwha, the board’s approval and the procedures for exercising existing shareholders’ preemptive rights were not followed.