MBK seeks to overhaul Hankook & Company's governance through 20.35% stake purchase

Kim Byung-ju, founder and chairman of MBK Partners. / Korea Times file

MBK Partners launched a public tender offer for public shares of Hankook & Company, the holding company of Hankook Tire & Technology, Tuesday, looking to enhance its corporate governance structure.

The tender offer will enable MBK Partners to secure a controlling stake in Hankook & Company, if at least 19,315,214 shares, or about 20.35 percent, of the total, are acquired.

MBK already signed an agreement with Hankook & Company’s major shareholders, Cho Hyun-shick and Cho Hee-won, prior to the tender offer bid. Their combined stakes stand at 29.54 percent.

“The controlling stakes that were gained through the tender offer will translate into the professional management of Hankook & Company, as underpinned by competent board members and CEOs independent of undue outside influences,” an MBK official said. "This will in turn fortify corporate values and healthy governance structures."

Ventura Corp., a special purpose company (SPC) established for MBKP SS’ tender offer, said that it will launch the public tender offer for Hankook & Company’s shares, which are listed on the Korea Stock Exchange in order to gain control of the company and to enhance the company’s corporate governance.

The tender offer price is set at 20,000 won ($15) per share. The price represents a premium of 41 percent and 55 percent over the one-month and three-month volume-weighted average share prices, respectively. It is also 19 percent higher than the latest closing price of 16,820 won — prior to the announcement.

The tender offer is targeting approximately 27.32 percent of the 94,935,240 total issued shares. The minimum target is around 20.35 percent and the maximum target is around 27.32 percent.

If the number of shares subscribed through the tender offer is less than the minimum target, no shares will be acquired by MBK.

However, if the subscribed shares exceed the maximum target, the subscribed shares will be proportionally allocated within the target range. The payment for the subscribed shares will be made in cash.