In Support of Hanjin Group Chairman
Delta Air Lines, which is known as an ally of Hanjin Group chairman Cho Won-tae in a proxy war on the group’s control, has acquired an additional stake in Hanjin KAL, the group’s holding company.
Delta announced on May 5 that it has additionally acquired 1,761,074 Hanjin KAL shares (a 2.98 percent stake) in the stock market, ramping up its stake in the company to 13.98 percent from 11 percent. Delta has been steadily buying Hanjin KAL shares recently. It acquired a 1 percent stake on Feb. 24.
As a result, chairman Cho and his allies have secured a 38.42 percent stake including a 23.44 percent stake held by the Cho family members, Delta Air’s 13.98 percent, and 1 percent held by Kakao.
On the other hand, the three-party alliance that stands against the chairman holds a 37.48 percent stake including the 17.68 percent stake of KCGI, 13.31 percent held by Bando Construction affiliates, and a 6.49 percent stake owned by Cho Hyun-ah, a sister of chairman Cho and a former vice president of Korean Air.
However, the pro-chairman Cho side's stake with voting rights is 37.12 percent and that of the three-party alliance 31.98 percent, since the shares acquired after the closing of the shareholders’ list at the end of last year do not carry voting rights at the shareholders’ meeting slated for March 27.
Meanwhile, Hanjin KAL announced on the same day that a lawsuit was filed by Daeho Development and two other shareholders requesting a court injunction that allows them to exercise their voting rights. In the lawsuit, Daeho Development, Hanyoung Development and Bando Development demanded that they be allowed to exercise their voting rights at the regular shareholders meeting on March 27. They each hold 2,152,000 shares, 2,210,000 shares and 500,00 shares of Hanjin KAL. According to the Commercial Act, listed companies have to allow minority shareholders who own 0.5 percent or more stakes from six months ahead of the shareholders meeting to exercise their rights such as shareholder proposal submission.