Korean Air’s acquisition of Asiana Airlines has been a thorny road right from the start. The tripartite alliance (Cho Hyun-ah, Kangsung Wealth Fund and Bando E&C), which faces group president Hanjin Cho Won-tae over Hanjin Kal’s management rights, has decided to raise money to secure further Hanjin shares Kal. The KCGI (Kangsung Wealth Fund) also filed a request for a temporary injunction to the court to block Korea Development Bank’s plan to acquire Hanjin Kal’s stake.
Branch of KCGI, which grants loans with equity collateral
Cho Hyun-ah has also raised funds with equity guarantees
When the mountain freezes, the fight against the pole becomes fierce
The “temporary sale of new shares of Hanjin Cal” on the 25th is also variable
According to the 22nd Electronic Disclosure System of the Financial Supervisory Service, Grace Holdings, a subsidiary of KCGI, recently announced that Meritz Securities has taken 5.5 million shares of Hanjin Kal as collateral and borrowed 130 billion won. . Instead, it canceled the contract, which had previously borrowed KRW 71 billion with 3.8 million shares as collateral from 10 financial companies such as savings banks. The additional guaranteed funds were approximately 59 billion won. KCGI owns 20.34% (1,156.5190 shares) of Hanjin Kal through 8 branches. Korean Air’s former vice president Cho Hyun-ah also received a loan from Woori Bank (300,000 shares), Korea Capital (23,000 shares) and Merchant Securities (30,000 shares) as collateral on 29-30 last month.
A KCGI official said, “We have prepared cash in advance as there may be situations where we could invest money in the company through a capital increase in preparation for the right to subscribe for new shares issued by Hanjin Kal.” New stock ownership rights are securities that give investors the right to purchase shares of an issuer at a predetermined price. The price of Hanjin Kal’s new shares (Hanjin Kal 3WR) listed on the Korea Exchange has plummeted 47% in the past ten days. This is because more investors believe that the value of Hanjin Kal’s new stock rights has decreased with the exit of KDB’s plans to support the Hanjin Group’s acquisition of Asiana Airlines.
KCGI filed an interim injunction with the court demanding that the KCGI halt its plan to acquire more than 500 billion won of Hanjin Kal’s shares (10.66% stake). This is because if San Eun-yi appears as President Cho’s “ baek knight ” (friendship stake) in the Hanjin Kal stake competition, it will be a decisive disadvantage for the trilateral alliance.
On the 25th, the Seoul Central District Court will open an interrogation for the “temporary injunction against the issuance of new Hanjin Kal shares” presented by the KCGI. Considering that the date (the date of the paid-up capital increase) is the 2nd of next month, the court decision should come out before the 1st of next month. Hanjin Kal said: “We will respond according to legal procedures.” If the court accepts KCGI’s interim injunction request, Korean Air’s acquisition of Asiana Airlines will revert to its original point. Sang-eun Choi, vice president of Saneun, said in a press conference on the 19th: “If (the court) quotes the request for an interim injunction, the combined transaction between Korean Air and Asiana Airlines will be destroyed.
KCGI also asked Hanjin Kal to call an extraordinary general meeting of shareholders. However, it seems unlikely that Hanjin Kal’s board of directors will accept an extraordinary shareholders’ meeting. Then, KCGI can request the court to grant a temporary meeting of shareholders. If Hanjin Kal’s extraordinary shareholders’ meeting is held with the court’s permission, the trilateral coalition should raise the agenda to appoint those who oppose the current management as registered directors and attempt a voting confrontation. The Fair Trade Commission has initiated an internal review on the combination of Korean Air and Asiana Airlines’ business. Fair Trade Commissioner Cho Sung-wook recently said: “We will decide (whether to approve a business combination) based on whether there are any restrictions on competition based on principles and laws and whether there are any adverse effects. on consumer welfare.
Reporter Kwak Jae-min [email protected]