Thursday, May 28, 2020
KCGI Increases Stake in Hanjin KAL to 16%
Narrowing Gap with Hanjin Group Owner Family
KCGI Increases Stake in Hanjin KAL to 16%
  • By Yoon Young-sil
  • May 29, 2019, 13:55
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Korea Corporate Governance Improvement Fund (KCGI) has increased its stake in Hanjin KAL Corp. to 16 percent.

Grace Holdings Ltd., a special purpose firm of the Seoul-based activist fund, announced on May 28 that its stake in Hanjin KAL increased from 14.98 percent on April 24, the previous reporting date, to 15.98 percent. It said it simply acquired an additional stake.

Grace Holdings additionally purchased a total of 202,623 shares in the stock market on May 23 and 24. Beta Holdings Ltd., a limited liability company with close ties with Grace Holdings, secured 392,333 shares.

Accordingly, the stake gap between KCGI and Cho Yang-ho, the late former Hanjin Group chairman who is the largest shareholder with 17.84 percent, was narrowed to below 2 percentage points.

The combined stake owned by the Hanjin Group’s owner family comes to 28.95 percent, including the 2.34 percent held by Cho Won-tae, the late Cho’s son, 2.31 percent owned by Cho Hyun-ah, the late chairman’s eldest daughter, and 2.3 percent held by Cho Hyun-min, his younger daughter.

KCGI bought a 9 percent stake in Hanjin KAL and became the second largest shareholder in November last year. It additionally secured an additional 7 percent stake in six months.

As KCGI’s stake in Hanjin KAL surpassed 15 percent, it is now on the list of M&A review by the Fair Trade Commission (FTC). A firm is required to report to the FTC when it owns more than 15 percent of a listed firm according to Article 12 of the Fair Trade Act.