Hanwha Galleria is seeking to delist its department store subsidiary in a bid to tackle shrinking domestic consumption amid signs of a recession.
The department store arm of South Korean conglomerate Hanwha, which holds a controlling stake in the subsidary Hanwha Galleria Timeworld, announced on Nov. 26 a tender offer for some 1.7 million common shares -- or 28.9 percent stake -- trading on the main bourse Kospi. The offer price stands at 26,000 won ($22) per share from Nov. 27 to Dec. 23. Hanwha Galleria Timeworld shares closed at 22.150 won Nov. 26.
Hanwha Galleria Timeworld shareholders may opt for a share swap on March 3, 2020 to receive 23.256 won in exchange for each share.
Following the transaction, Hanwha Galleria Timeworld will be delisted from Kospi.
A wholly owned arm of Hanwha Chemical, Hanwha Galleria operates five department stores and a duty-free shop, with net profit of 25.3 billion won in 2018.
Hanwha Galleria Timeworld runs one luxury department store in Daejeon, with 9.5 billion won net profit in 2018, turning around after closing a duty-free shop in Jeju International Airport in 2017.
By Son Ji-hyoung (email@example.com)