Hanjin Kal's preferred shares have continued to rise for four consecutive days amid expectations of a management rights dispute. With Hoban Construction becoming the largest shareholder of Hanjin Kal, Chairman Cho Won-tae of Hanjin Group has also indicated plans for additional share purchases, highlighting the potential for a share competition between the two parties.
According to the Korea Exchange, as of 9:39 a.m. on November 5, Hanjin Kal's preferred shares were trading at 57,000 won, up 9,250 won (19.37%) from the previous trading day. The shares had already recorded three consecutive days of hitting the upper limit prior to this, showing double-digit growth again today.
The rapid increase in share prices has led the Korea Exchange to designate Hanjin Kal's preferred shares as an investment caution item for the day. Additionally, warnings regarding investment and short-term overheating have been announced. If the share price continues to rise and trading volume meets relevant criteria, further market alert measures may be implemented.
This surge is attributed to the change in the largest shareholder of Hanjin Kal and the potential for share competition. Hanjin Kal announced on November 4 that its largest shareholder had changed to Hoban Construction and three others, following Hoban Construction's additional stock purchases on the market.
As of November 3, Hoban Construction held a 20.69% stake, slightly surpassing the 20.58% stake held by Chairman Cho and related parties by 0.11 percentage points. Given the narrow margin between the two parties' shareholdings, there is speculation that the ownership structure could change again depending on future share acquisition moves.
Chairman Cho has also expressed intentions to purchase more Hanjin Kal shares, leading to predictions that the share competition between the two sides may intensify. There is particular interest in whether Hoban Construction's increased stake will remain a simple investment or lead to moves for securing management rights.
However, Hoban Construction has stated that the change in the largest shareholder is due to market purchases for investment purposes, leaving uncertainty about whether this will escalate into a management rights dispute. Given the recent surge in share prices and the market alert measures, caution is advised regarding potential future volatility in share prices.
* This article has been translated by AI.
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