Hoban's Hanjin KAL stake gains $657 mil. amid control battle speculation
Kim Sang-yeol, founder and former chairman of Hoban Group / Yonhap
Hoban Group's stake in Hanjin KAL has gained an estimated 883 billion won ($657 million) in market value since the beginning of this week, as the construction group's emergence as the holding company's largest shareholder has fueled speculation over a potential battle for control.
The valuation gain follows Wednesday's disclosure that Hoban and related parties held 13,814,053 common shares, or 20.69 percent of Hanjin KAL, narrowly overtaking Hanjin Group Chairman Cho Won-tae and his cohort, whose combined stake stood at 20.58 percent.
Hanjin KAL shares closed at 123,900 won last Friday before climbing to 187,800 won Thursday morning, a gain of 63,900 won, or approximately 51.6 percent. Applying the increase to Hoban's disclosed shareholding translates into a valuation gain of approximately 882.7 billion won. At Thursday morning's price, its stake was worth about 2.59 trillion won, up from approximately 1.71 trillion won at Friday's close.
Investor interest intensified after reports emerged Monday that Hoban had filed a business combination notification with the Fair Trade Commission. Cho has separately disclosed plans to acquire an additional 325,000 shares, further fueling expectations that the two sides could compete to strengthen their shareholder positions.
However, becoming the largest shareholder does not automatically translate into management control. Delta Air Lines holds a 14.9 percent stake in Hanjin KAL, while state-run Korea Development Bank owns 10.58 percent. Together with Cho's holdings, these stakes account for approximately 46 percent of the company.
Hoban has maintained that its investment is for simple investment purposes and has not publicly announced plans to participate in management. Cho and his allies could reclaim the largest-shareholder position after completing the planned purchase by Jan. 1, according to a Korean Air official.
For now, the estimated 883 billion won increase represents an unrealized gain rather than confirmed investment profit. The valuation will fluctuate with Hanjin KAL's share price, while calculating Hoban's actual investment returns would require verified acquisition costs, transaction records and changes in its holdings over time.