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[Alpha Biz=(Chicago) Reporter Kim Jisun] The management dispute between the brothers of Hankook & Company (formerly Hankook Tire Group) recurred after more than two years.
Cho Hyun-sik, the eldest son of Cho Yang-rae, honorary chairman of Korea & Company, who stepped down from the management front, has launched an open purchase of shares with private equity fund operator MBK Partners to secure managerial control. Cho Hyun-bum, the second son of honorary chairman Cho, chairman of Hankook & Company, is on trial on charges of embezzlement and breach of trust worth 20 billion won.
MBK's Special Purpose Company (SPC) announced on the 5th that it will publicly purchase 20.35% to 27.32% of Korea & Company's stake by the 24th. If the tender purchase succeeds, the combined stake of adviser Cho and his sister Cho Hee-won, who held his hand, will rise from the current 29.54% to 50-57%. This would give Chairman Cho a higher stake than his 42.03% stake, giving him an upper hand in securing managerial control.
However, the possibility of a successful tender offer is unknown. MBK set the purchase price per share at 20,000 won, and its share price has soared to 21,850 won since the disclosure of the public offering. Shares of Hankook & Company jumped 29.90% from 16,820 won the previous day, breaking the 52-week high.
With the existing tender purchase price, it is highly likely that individual shareholders will not accept the tender purchase of advisor Cho's shares. If the shares that apply for the tender offer fall short of the minimum target of 20.35%, the tender offer will be canceled.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
