 |
Hanwha Ocean Geoje Business Site. (Photo=Hanhwa Ocean) |
[Alpha Biz= Kim Jisun] Korea Development Bank (KDB) is set to divest its stake in Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) after 25 years of holding the shares.
According to financial industry sources on April 28, KDB has conducted a demand survey to sell its 19.5% stake (approximately 59.74 million shares) in Hanwha Ocean through a block deal (off-hours large-volume trading).
Approximately 4.3% of the total stake (around 13 million shares) participated in the initial demand survey. KDB plans to formulate additional strategies for selling the remaining shares, taking into consideration potential market impact.
KDB initially acquired the stake in 2000 through a debt-to-equity swap after Daewoo Shipbuilding entered a workout program following the collapse of the Daewoo Group in 1999.
For the past 25 years, KDB has played a key role as a major shareholder, working toward normalizing operations and preparing for the sale. The decision to sell is believed to have been influenced by the recent recovery of the shipbuilding market and a significant surge in Hanwha Ocean’s stock price.
Hanwha Ocean shares, which stood at KRW 25,400 on August 5 last year, have recently soared past KRW 90,000, reaching a new record high of KRW 95,300 as of April 28.
The divestment is also expected to improve KDB’s Basel III Capital Adequacy Ratio (BIS ratio). Bank-held equities are assigned a high risk weight, meaning rising stock prices can negatively impact capital ratios.
As of the end of last year, KDB's BIS ratio stood at 13.9%, just above the regulatory recommendation of 13%. The sale of the Hanwha Ocean stake is anticipated to bolster KDB’s capital adequacy.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
