Tuesday, November 19, 2019
What Compels JTBC Chairman and His Sister to Sell Some of Their BGF Retail Stakes?
For Management Succession?
What Compels JTBC Chairman and His Sister to Sell Some of Their BGF Retail Stakes?
  • By Jung Suk-yee
  • June 26, 2017, 03:45
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Hong Seok-hyeon, a former chairman of JoongAng Ilbo and JTBC and his sister and former director of the Leeum Art Museum will sell some of their equities in BGF Retail operating a convenience store CU.
Hong Seok-hyeon, a former chairman of JoongAng Ilbo and JTBC and his sister and former director of the Leeum Art Museum will sell some of their equities in BGF Retail operating a convenience store CU.

 

According to the investment banking (IB) industry on June 22, shortly after the closing bell of the day, chairman Hong and other interested parties began to predict institutional investors’ demand for a block deal of 22.83 million shares of BGF Retail.

Goldman Sachs is the lead manager with discount rates of 7.3% to 9.1% per share compared to the closing price. If the block deal takes place, chairman Hong and other interested parties will secure liquidity of 228.3 billion won.

"The stock price of BGF Retail is up 34.4 percent from the beginning of the year," an industry source said. "We know that after we sell some of our stakes, the remaining amount will go to safe custody for one year." Former chairman Hong and former vice director Hong are the second and third largest shareholders of BGF Retail, respectively. Their shares before the sale are 3.53 million shares (7.13%) and 3.19 million shares (6.45) respectively.

"Hong Seok-hyeon who retired from the JoongAng Ilbo and JTBC as its chairman recently needs some funds for the succession of management rights such as tax," a BFC Retail official said. "I understand that former vice director Hong Ra-young wants to sell them for personal reasons."