Hanjin KAL has taken steps to defend its management rights against Hoban Construction by donating its treasury shares to the company’s employee welfare fund. As a result, the stake held by Chairman Cho Won-tae and his affiliates increased to 20.13%, widening the gap with Hoban Group to 2.2 percentage points.
An Asiana Airlines passenger plane is taxiing toward the runway at Gimpo Airport apron in Gangseo-gu. Photo by Hyunmin Kim kimhyun81@
On May 15, Hanjin KAL announced through a regulatory filing that it would contribute 440,044 treasury shares, equivalent to 0.7% of its common shares, to the employee welfare fund. The price per share is 150,600 won, with a total value of 66.27 billion won.
Hanjin KAL donated all of its treasury common shares. When Hanjin KAL donates shares to the employee welfare fund, the shares are transferred to the fund, and the fund acquires voting rights for those shares.
As a result, the stake held by Chairman Cho's side increased from 19.96% to 20.66%. The gap with Hoban Construction’s stake widened from 1.7 percentage points to 2.2 percentage points.
Previously, Hoban Construction had increased its stake in Hanjin KAL from 17.44% to 18.46% through market purchases, raising the possibility of a management dispute between the two sides.
Separately, Hanjin KAL also announced that it would acquire an additional 150,469 shares of its affiliate Jungseok Enterprise for 52.062 billion won. Hanjin KAL stated that this is a measure to strengthen its control over Jungseok Enterprise.
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