[Click e-Stock] "Hanjin KAL, Stake Competition Possibility Exaggerated... Change in Largest Shareholder Unlikely"

On May 19, NH Investment & Securities assessed that the possibility of a stake competition recently raised regarding Hanjin KAL has been exaggerated.

On this day, Jung Yeonseung, a researcher at NH Investment & Securities, stated, "The gap in shareholding between the side of Hanjin Group Chairman Cho Won-tae and Hoban Group is sufficient," expressing this view.

Last week, Hanjin KAL's stock price fluctuated sharply as the possibility of a stake competition between the two sides was raised. Hoban Group further increased its stake in Hanjin KAL to 18.46%, narrowing the gap with Chairman Cho and his related parties.

However, researcher Jung pointed out, "Although the stock price fluctuated due to expectations of a stake competition, considering the current shareholding structure, the possibility of such a competition is exaggerated." He explained that Chairman Cho and his related parties hold 20.79% (including treasury shares disposed of to the company welfare fund), Delta Air Lines holds 14.90%, Korea Development Bank holds 10.58%, and other friendly shareholders also hold stakes, meaning that Chairman Cho's side has already secured a combined 50.12% stake.

Researcher Jung added, "Even if Korea Development Bank sells its stake, Chairman Cho's friendly shares would be 39.54%, so the gap with Hoban Group would still remain significant." He also noted, "In the case of Delta Air Lines, it is a major airline that has cooperated with Korean Air for a long time. They are operating a joint venture (JV) on North American routes, and considering the current partnership structure, the likelihood of Delta Air Lines demanding a change in the largest shareholder is very low."

He continued, "In reality, the gap in shareholding between Chairman Cho's side and Hoban Group is large, so the likelihood of a stake competition being triggered is low." He added, "While there is a possibility that Hoban Group may attempt to enter the board of directors based on its stake, a change in the largest shareholder is difficult."