Kim Dong-sun Expands Hanwha M&S Tender Offer to 26.2 Million Shares, Reaching About 31% of Common Stock

Kim Dong-sun, head of future strategy at Hanwha Machinery & Services Holding (Hanwha M&S), has decided to increase the tender offer volume for Hanwha M&S common stock by approximately 10 million shares.

According to the Financial Supervisory Service's electronic disclosure system, Kim filed an amendment today (October 22) to the tender offer statement initially disclosed on October 12, raising the tender offer volume from 16.06 million shares to 26.203 million shares.

The tender offer volume increased from 19% to around 31% of the total existing common stock, while the purchase price of 8,000 won and the tender offer period running until November 2 remained unchanged.

With the increase in purchase volume, Kim's personal funds injected into this tender offer will rise from 1.285 billion won to approximately 210 billion won.

The background behind the additional tender offer volume involves tender offer subscriptions by specially related parties, including Hanwha Group Vice Chairman Kim Dong-kwan and Hanwha Life Insurance Vice Chairman Kim Dong-won.

Vice Chairman Kim Dong-kwan expressed his intent to subscribe 6.761 million shares (8%), and Vice Chairman Kim Dong-won expressed his intent to subscribe 3.381 million shares (4%), which accounts for 63.2% of the original tender offer volume.

A Hanwha M&S official explained, "Concerns were raised that general minority shareholders intending to participate in the tender offer might have their participation rights infringed upon, prompting Kim to significantly expand the tender offer volume. This was a decision made to live up to the purpose of the tender offer, which is to provide all shareholders with the opportunity to sell their held shares under identical conditions."

Previously, at Hanwha M&S's first general meeting of shareholders last month, concerns arose regarding continuous stock price declines and future growth potential, prompting Kim to pursue a tender offer as part of responsible management.

The tender offer price of 8,000 won surpassed the market average, representing a 27% premium over the one-month average price (6,300 won) as of the disclosure date on October 12, and a 32% premium over the closing price (6,080 won) of the previous trading day (October 8).

As the market perceived Kim's tender offer as a strong commitment to responsible management and enhancing shareholder value, Hanwha M&S's stock price has risen by 22.37% since the disclosure on October 12.

While the KOSPI 200 index dropped by 17.64% this month through yesterday, Hanwha M&S surged by 30.3%, recording the highest increase rate among KOSPI 200 component stocks.

(Photo provided by Hanwha M&S, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.