April 26, 2024

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[THE INVESTOR] Grace Holdings is likely to attempt to take over management control of Hanjin KAL, said Daishin Securities on Nov. 16. 

The local private equity firm announced that it has acquired 9 percent stake (5,322,666 shares) of the transportation heavyweight. As terms of three board members of Hanjin KAL –- its CEO and two external directors -- expire in March, the investment firm is seeking to replace them with its own officials. Chairman Cho Yang-ho and his partners own 28.95 percent stake, but institutional investors, foreigners and small stakeholders could be variables. Considering that Hanjin Group has been at the center of major controversies, many minority shareholders could back Grace Holdings. There is also the possibility that National Pension Service, Korea Investment Trust Management and Credit Suisse, with combined 15.71 percent stake, could support it, said. analyst Yang Ji-hwan.

If the PEF manages to gain control, it is expected to sell assets including hotels and real estate to alleviate losses, and to take part in management of affiliates. Until the voting results come out next year, Hanjin KAL’s stocks will fluctuate severely, added the analyst.

By Hwang You-mee (glamazon@heraldcorp.com)