With Assets totaling 10.4 trillion Won (US$7.91 Billion) Hankook & CompanyFormerly known as the Hankook Tire GroupA power struggle has erupted among the siblings of, who are currently ranked 40th on the list for business. After In 2021, as the economy is expected to slump, the dispute over management between the brothers resurfaces, bringing the older brother against the younger in this “Season 2” episode.
On Dec. 5, Ventura Co., Ltd. The company announced publicly its intention to acquire shares in Hankook & Company. Ventura MBK established a special-purpose company. Partners Special Situations (MBKP SS), a local private equity fund manager. On On the same day Ventura announced, “We have entered into a shareholder agreement related to public purchases on the 30th of last month with advisor Cho Hyun-sik of Hankook & Company and Cho Hee-won.” Through VenturaMBK Partners The aim is to obtain management rights by collaborating with Advisor ChoThe public sale period continues until Dec. 24. Advisor Cho Hyun-sik’s eldest child is Honorary Chairman Cho Yang-rae Hankook & CompanyWhile Cho HeeThe second daughter of Chairman Cho.
Hankook & Company’s The largest shareholder is Chairman Cho Hyun-bum holds a stake of 42.03 percent. Advisor Cho Hyun-sik Cho Hee-won and MBK each own 18.93 percent of the company, while 10.61 percent is held by MBK. The The combined ownership of both individuals is 29,54 percent. In the event that MBK successfully acquires a public company, the two could be awarded management rights with a stake ranging between a minimum of 50%+1 share and a maximum of 56.66%. The Total value of this public purchase is 518,7 billion won ($394,45 million).
MBK has announced publicly its intention to purchase shares in Hankook & CompanyThe minimum is 19,315,214, or 20,35 percent. The maximum is 25,934,385 or 27,32 percent. When The combined holdings of Advisor Cho HyunThis could elevate them to a position as the largest shareholder. Hankook & Company. MBK Advisor Cho The parties have agreed that they will not exercise their joint voting rights as the largest shareholder without the consent from the other party. MBKP SS said, “In the event of a successful public acquisition and securing voting rights exceeding 50 percent, we will promptly introduce a professional management system to enhance the corporate value of Hankook & Company.”
Within The recent public acquisition has been interpreted by the business community as the start of a second conflict between siblings within Hankook & Company. HoweverAs the brothers enter into this second dispute, it is important to note the disparity between their ownership. Particularly Considerable is Chairman Cho’s The amicable acquisitions and the hint that he can counter if needed with a public purchase. This It is possible that the public acquisition will not be a success, due to the fact that Chairman Cho Holds a favorable position, with over 40% ownership. Immediate Advantage lies in Chairman Cho HyunWith an additional 8 per cent, he could control over 50% of the company and preserve his management rights. Advisor Cho The following are some examples of how to get started: Ventura The plan is to convince the small shareholders as well as foreign investors who together hold 10.37 per cent of the shares.
Even If both parties engage in a contest for ownership stakes Chairman Cho He is said to have enough financial resources available. According Then, you can get in touch with us. Financial Supervisory Service’s Electronic disclosure system, about 25 percent Chairman Cho’s Shares of 42.03 percent in Hankook & Company Stock is used as collateral to secure loans. This This implies that additional funds could be raised in the event of an increase in stock values through stock-secured loan. An investment banker commented on the matter. “MBK may increase the public acquisition price. However, Chairman Cho seems to have the upper hand at this point,” adding, “The duration of the dispute could depend on MBK’s strategy.”
In In fact, some people believe that MBK might respond by raising its public acquisition price. According to a high-ranking financial official, “If the initial public acquisition price is set high, the stock price is likely to rise to that level immediately. Considering that the closing price the previous day was 16,820 won, MBK might take a step-by-step approach, and there could be some significant developments.”
Regarding An industry insider stated that the public purchase price was set at 20,000 Won. “It’s asking shareholders who bought shares for more than 20,000 won in the past to accept a negative return through the public acquisition. There’s skepticism about whether there is a precedent for such a request being successful in past hostile M&A situations.” Some In the industry, there is speculation that MBK would rather capitalize on the price differentials resulting in the management dispute than pursue a simple takeover of the management rights.
The Direction Hankook & Company’s Stock price will be a major factor in determining the outcome. HoweverMBK PartnersPublic acquisition of Hankook & Company’s The shares market has been stymied from the beginning. Despite Joint efforts Advisor Cho and MBK in initiating a hostile merger and acquisition (M&A) through public acquisition targeting Hankook & CompanyThe holding company of the Hankook Tire GroupThe closing price soared to 21,850 won. This was well above the public purchase price of 20,000 won. It also exceeded the daily limit. This Situation increases the likelihood of individual shareholders resisting response Advisor Cho’s Public purchase of shares
According Then, you can get in touch with us. Capital Market ActIt is possible for the buyer to make changes that are favorable during the public purchase period. Industry Experts believe that this situation has a high probability of becoming a “money game.” A high-ranking industry official familiar with M&A stated, “It may not be easily understandable, but didn’t MBK anticipate the significant difference in ownership between Chairman Cho and Advisor Cho, and the potential for a sharp increase in stock prices? The key lies in how much both parties are willing to spend.”
From MBK stated that it was the main issue to ensure the minimum number expected of shares in the public acquisition. This is 19,315,214 which is approximately 20,35 percent. MBK stated: “If we cannot reach the minimum target, we do not plan to purchase a single share. It means a conditional public acquisition.” This This allows for flexibility, and indicates that MBK is open to alternative options if a minimum target cannot be met.
In Market consensus is that MBK will not lose much in this dispute over management. If MBK has a drag-along clause that allows them to bundle the stakes and sell them. Advisor Cho The following are some examples of how to get started: Cho HeeThe original purchaser will win the prize. With MBK can achieve substantial returns on investment by selling a top 10 global tire company. Hankook Tire & TechnologyAs part of the deal.
The Conditions also favor MBK. According Shareholder agreement Advisor Cho MBK has agreed not to exercise its voting rights jointly with Chairman ChoThe largest shareholder in Hankook & CompanyWithout mutual consent. Advisor Cho’s The side has also agreed not to sell the shares held to a third-party without MBK’s consent. Particularly If MBK is able to secure over 50% of Hankook & Company’s The CEO and more than half the board can be nominated by the company. The The CEO is appointed by negotiation. HoweverMBK reserves the right of making nominations if a consensus cannot be reached.
The The conflict between two brothers goes back to June 2020. In The year was a very busy one for the city. Chairman Cho All 23.59 per cent of shares held by Honorary Chairman Cho Through off-hours bulk trade, he increased his stake to 42.90 per cent and became the largest shareholder Hankook & Company. Prior This event is a must-see! Advisor Cho Held a stake in 19.32 percent Chairman Cho’s Their ownership was similar, with a stake of 19.31 percent. The The management dispute appeared to be resolved temporarily after Chairman Cho Assuming the role as chairman December The year 2021 will be the last. Vice Chairman Cho Hyun-Sik left his advisory role.
HoweverThe situation changed when Chairman Cho Indicted for a crime March Approximately 20 billion won was seized on charges of embezzlement, fraud and breach of confidence. He The bail was then released. Nov. 28. An Industry insider comments “It appears that Advisor Cho entered into the dispute, taking issue with his brother’s legal risks.”