Hoban gains $822 mil. in Nov. from Hanjin KAL stake
Summary
Hoban Group’s stake in Hanjin KAL, in Seoul, gained an estimated 1.1 trillion won in market value this month through Friday amid speculation over a potential control battle. A Nov. 4 disclosure showed Hoban and related parties narrowly ahead of Hanjin Group Chairman Cho Won-tae and related parties as the company’s largest shareholder bloc. Hanjin KAL shares peaked at 239,000 won Tuesday before falling and closing at 203,500 won Friday. Cho plans to buy shares in early December, which could put his bloc back ahead.
Key Facts
- Hoban and related parties held 13,814,053 common shares, or 20.69 percent, compared with 20.58 percent for Cho’s bloc.
- Hanjin KAL shares rose from 123,900 won on Oct. 30 to a closing peak of 239,000 won Tuesday, a 92.9 percent increase from October’s final close.
- Assuming Hoban’s disclosed shareholding remained unchanged, its stake was worth about 2.81 trillion won Friday, compared with 1.71 trillion won on Oct. 30.
- Cho plans to acquire 325,000 shares for 37.05 billion won in early December; if completed and other holdings remain unchanged, his bloc’s stake would rise to about 21.07 percent.
- Delta Air Lines and Korea Development Bank hold 14.90 percent and 10.58 percent, respectively, and together with Cho’s bloc account for about 46 percent. The reported market-value gains are not cumulative investment returns based on acquisition costs or realized profits from share sales.
Employees walk past Hoban Construction’s headquarters in Seocho District, Seoul, in this Aug. 31, 2022, photo. Newsis
Hoban Group’s stake in Hanjin KAL, the holding company of Hanjin Group, gained an estimated 1.1 trillion won ($822 million) in market value this month through Friday amid sharp share price swings fueled by speculation over a potential battle for control.
Its value also rose by about 265.2 billion won from Nov. 4, when Hoban was disclosed as the company’s largest shareholder.
Hoban emerged as Hanjin KAL’s second-largest shareholder in 2022 and steadily increased its holdings before overtaking Hanjin Group Chairman Cho Won-tae and related parties.
The Nov. 4 disclosure showed that Hoban and related parties held 13,814,053 common shares, or 20.69 percent, narrowly ahead of Cho’s bloc at 20.58 percent.
Hanjin KAL shares climbed from 123,900 won on Oct. 30 to 184,300 won on Nov. 4, reaching a closing peak of 239,000 won on Tuesday, a 92.9 percent increase from October’s final close.
Profit-taking subsequently pushed the stock down 14.64 percent on Wednesday and another 0.49 percent Thursday. It edged up 0.25 percent Friday to close at 203,500 won.
Assuming Hoban’s disclosed shareholding remained unchanged, its stake was worth about 2.81 trillion won Friday, up 1.1 trillion won from 1.71 trillion won on Oct. 30. It was also worth 265.2 billion won more than its approximately 2.55 trillion won valuation on Nov. 4.
At Tuesday’s closing peak, the stake was worth about 3.3 trillion won, an increase of 1.59 trillion won from Oct. 30.
The largest-shareholder position could change again next month. Cho plans to acquire 325,000 shares for 37.05 billion won in early December. If the purchase is completed and other holdings remain unchanged, it would lift his bloc’s stake to about 21.07 percent, overtaking Hoban.
Despite the recent change in the top shareholder, Cho retains an advantage in defending management control. Delta Air Lines and Korea Development Bank, considered friendly shareholders, hold 14.90 percent and 10.58 percent, respectively. Combined with Cho’s bloc, they account for about 46 percent.
Further purchases by Hoban or a bid for board representation at next year’s annual shareholders’ meeting could intensify the contest.
The calculated increases reflect changes in market value over specified periods, rather than cumulative investment returns based on acquisition costs or profits realized through share sales.
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