Hanwha Galleria Announces Public Offering of 34 Million Shares… 34% Higher Price than Last Month’s Closing Price
Feeling a sense of crisis due to deficit in the second quarter… Likely to buy back own stocks and strengthen responsible management
Kim Dong-sun, Vice President of Hanwha Galleria, announced his intention to publicly purchase the company’s stocks in order to increase the company’s competitiveness.
On the 23rd, Hanwha Galleria announced that it will conduct a public purchase of 34 million shares of Hanwha Galleria common stock from that day until September 11th. It plans to purchase Hanwha Galleria stock at 1,600 won, which is about 34% higher than the average closing price of 1,190 won over the past month. It is interpreted that Hanwha Galleria has shown its intention to strengthen responsible management by purchasing its own stocks in a situation where the macro economy is not good after recording its first deficit in the second quarter.
The 34 million shares to be publicly offered are equivalent to 17.5% of all common stocks, and upon completion of the planned public offering, Vice President Kim Dong-sun will secure approximately 19.8% of the shares. It is said that 54.4 billion won in funds will be required and will be executed with Vice President Kim’s personal funds. Hanwha Galleria turned to a deficit in the second quarter for the first time since its listing as department store sales declined due to the prolonged slump in consumption.
Vice President Kim Dong-sun is said to have strengthened his commitment to responsible management by being promoted to ‘Future Vision Director’ this month. There is also an interpretation that he expressed his confidence in the future of the business by making a public offering.
Once the public offering is completed, it is expected to have a positive effect on improving shareholder value. Kim Young-hoon, CEO of Hanwha Galleria, said, “We feel a heavy sense of responsibility in the unprecedented crisis of turning a deficit, and we have shown our strong will to further grow the company together with shareholders. The public offering will likely send a positive signal to the stock price and corporate value.”
A public offering is a method of publicly proposing a purchase to shareholders in order to purchase a large quantity of stocks. In the case of the owner’s family purchasing treasury stocks, such as Vice President Kim Dong-sun, it is common for stocks to be purchased to secure shares and then held for a long period of time, which has the effect of improving shareholder value. In addition, by reducing the number of outstanding shares, it can have a positive effect on the stock price rising in the long term.
A Hanwha Galleria official emphasized, “In order to live up to the increased corporate value resulting from this public offering, we will continue to discover new growth engines that will lead the company in various fields while enhancing the competitiveness of our existing businesses.”
Currently, Hanwha is in the process of a third-generation succession, and Vice President Kim Dong-sun, the third son of Chairman Kim Seung-yeon, is entering the business by taking over distribution and leisure businesses such as Hanwha Galleria and Hanwha Robotics. This public offering is interpreted as an attempt to increase shares and strengthen management rights.
Kim Sang-jun, Donga.com reporter [email protected]
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2024-08-24 18:07:29