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THE INVESTOR
March 26, 2019
Big Reunion

Stocks & Bonds

Hanjin Transport shares slide as activist fund picks up stake

  • PUBLISHED :January 04, 2019 - 14:13
  • UPDATED :January 04, 2019 - 14:13
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[THE INVESTOR] Shares of Hanjin Transportation dipped on Jan. 4 following news that a local activist fund has acquired stake.

As of 2 p.m., shares of the logistics service provider on Korea’s main bourse KOSPI sank 7.55 percent from the previous day’s close. The firm has a market capitalization of 564.61 billion won (US$502.41 million).

Hanjin Group Chairman Cho Yang-ho

The company has announced that three special purpose companies under the control of Korean activist fund Korea Corporate Governance Improvement acquired a combined 962,133 shares, accounting for 8.03 percent stake.

KCGI affiliates combined are now the second-largest shareholder after holding company Hanjin KAL.

The move came in sync with KCGI’s attempt to engage in decision-making of the firm. It has said it aims to improve corporate governance of the family-owned conglomerate, whose leadership last year was mired in allegations of embezzlement, tax evasion, smuggling, assaults and illegal hiring.

Its subsidiary Grace Holdings had purchased 9 percent stake in Hanjin KAL in November 2018 to become the second-largest shareholder. Following this, Hanjin KAL shares soared 17 percent in three days, unlike that of Hanjin Transportation.

“The unexpected price fall is most likely because of investors’ appetite for profit-taking,” Um Kyung-a, an analyst at Shinyoung Securities, told The Investor.

Hanjin Transportation’s major shareholders include Hanjin KAL which owns 22.19 percent and Hanjin Group Chairman Cho Yang-ho who holds 6.87 percent.

By Son Ji-hyoung (consnow@heraldcorp.com)

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