Welcron Hantec’s Largest Shareholder and Management Make Series of Stock Purchases, Raising Stake to 38.78%

[Financial News] Welcron Hantec announced on the 2nd that its largest shareholder, key executives and employees had successively purchased shares in the company.
Welcron, the largest shareholder, bought 439,573 shares of Welcron Hantec on the open market since May. Its holdings consequently increased to 6,265,682 shares, while its stake rose from 25.79% to 27.73%.
The management also began purchasing shares. CEO Lee Young-gyu bought a total of 355,071 shares on the open market since June. Co-CEO Kang Young-gil, inside directors Shin Jung-jae and Jung Sung-sik, and auditor Song Young-seop additionally acquired 10,008, 124,050, 109,230 and 41,600 shares, respectively.
As of the 1st, the combined holdings of the largest shareholder and persons acting in concert totaled 8,761,264 shares, an increase of 1,066,185 shares from the beginning of the year. Their combined stake rose from 34.06% to 38.78% over the same period.
Employees also participated in the share purchases. The Welcron Hantec Employee Stock Ownership Association recently bought 395,254 shares of the company.
The stock purchases took place alongside improvements in the company’s financial structure. Welcron Hantec resolved the burden of assuming approximately 42.5 billion won in project financing (PF) debt related to the Siwha MTV development project. In the process, approximately 19 billion won in provisions previously recognized was reversed. Consolidated net profit for the first half was 17.2 billion won, marking a return to profitability.
New orders have also continued. Welcron Hantec recently won an approximately 80 billion won contract for the construction of “Bukwirye Village,” a project being promoted by KB Golden Life Care. After carrying out the Seocho and Eunpyeong projects, the company will now take on an additional project for KB Golden Life Care.
A Welcron Hantec official said, “By resolving the financial uncertainties related to Siwha MTV and returning to profitability in the first half, we have laid the foundation for normalizing management.” The official added, “Based on responsible management by the largest shareholder and the management, we will strengthen the competitiveness of our existing businesses and secure new growth engines over the medium to long term.”
The official continued, “We plan to strengthen our environmental plant business by leveraging our engineering, procurement and construction (EPC) capabilities built up in water treatment, waste treatment and resource recovery, and power generation and energy.” The official added, “We will expand our business areas, focusing on industrial water treatment and resource circulation.”
[email protected] Choi Doo-sun Reporter