Hoban Group and Cho Won-tae, chairman of Hanjin Group, are engaged in a fierce competition for the largest shareholder position in Hanjin Kal. Although Hoban has recently surpassed Cho, the latter is expected to make additional stock purchases next month, increasing the likelihood of a reversal. The competition for share acquisition is anticipated to intensify ahead of the regular shareholders' meeting scheduled for March next year.
According to industry sources, Hanjin Kal announced on November 4 that the largest shareholder has changed from 'Cho Won-tae and 18 others' to 'Hoban Construction and 3 others.' Hoban now holds 13,814,053 shares (20.69%), which is 7,5134 shares more than Cho's 13,738,919 shares (20.58%). The difference in shareholding is just 0.11 percentage points.
This change in the largest shareholder status is due to Hoban Industries' recent stock purchases, increasing its holdings from 112,145 shares to 471,524 shares. Consequently, the combined shareholding of Hoban's four affiliates—Hoban Construction (11.50%), Hoban Hotel & Resort (8.34%), Hoban Industries (0.71%), and Hoban (0.15%)—has surpassed that of Cho's group.
However, the largest shareholder status is likely to change again next month. Cho plans to acquire an additional 325,000 shares of Hanjin Kal through a block deal from December 3 to January 1, which would raise his shareholding to 21.06%, allowing him to reclaim the largest shareholder position.
The key factor will be Hoban Group's future actions. Since becoming a major shareholder by acquiring Hanjin Kal shares from private equity firm KCGI in 2022, Hoban has steadily increased its holdings. In July, it raised its stake to 20.15%, narrowing the gap with Cho to 0.42 percentage points. Having secured the largest shareholder position for the first time in four years, Hoban is expected to continue expanding its shareholding.
Particularly, the regular shareholders' meeting of Hanjin Kal scheduled for March next year is seen as a critical juncture for both sides' share competition. While Hoban Group has stated its purpose for shareholding as 'simple investment,' there are speculations that it may exercise shareholder rights, including entering the board, based on its over 20% stake.
In the medium to long term, the fate of the 10.58% stake held by the Korea Development Bank will also be a variable. If it proceeds through a private contract with a specific shareholder, it could raise controversies over the state-owned bank's support for management rights defense, making a public competitive bidding more likely. In this case, Hoban or a new faction favorable to Hoban is analyzed to be the most active bidder.
Kim Soo-hyun, a researcher at DS Investment & Securities, stated, 'Hoban is a corporation with trillions of won in cash, while Cho is facing challenges with personal loans and funds for his shareholding. The succession plan is still unclear, and as the inheritance tax will inevitably lead to a decline in shareholding, Hoban's negotiating power will increase over time.'
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.