Hoban poised to become Hanjin KAL Corporation’s largest shareholder? ... “Still under Korea Fair Trade Commission (KFTC) review”

[Financial News] Hoban Group is reported to have completed share purchases sufficient to make it the largest shareholder of Hanjin KAL Corporation. However, it has not been confirmed as the largest shareholder, as the Korea Fair Trade Commission’s merger review is still underway.
According to industry sources on the 2nd, Hoban Group recently surpassed the stake held by the side of Walter Cho, chairman of Hanjin Group, through open-market purchases. It has been four years since the group bought KCGI Asset Management’s stake in 2022 and became the second-largest shareholder.
Hoban Group reported the business combination to the KFTC last month and is under review. Acquiring 15% or more of a listed company’s shares, and subsequently becoming its largest investor, each require a separate KFTC review. Hoban already underwent a review in 2022 when it acquired 15% or more of Hanjin KAL Corporation, so it is presumed to be undergoing another review because it has now secured the largest stake.
Hanjin KAL Corporation plans to make a further disclosure once specific details concerning its largest shareholder are confirmed, or within one month. This appears to mean that Hoban has not been confirmed as Hanjin KAL Corporation’s largest shareholder because the KFTC review has yet to conclude. The review normally takes 30 days, with an additional extension of up to 90 days possible if needed.
The KFTC is examining changes in actual control and the possibility of restrictions on competition, among other factors. It makes an overall assessment based not only on ownership stakes but also on relationships among shareholders, whether executives hold concurrent positions, and business and financial ties between companies.
Since Hanjin KAL Corporation and Hoban have different core businesses, the acquisition of the stake itself is not expected to be blocked on grounds such as restricting competition. However, a transfer of management control is unlikely. Walter Cho, chairman of Hanjin Group, retains firm control, and friendly major shareholders, including Delta Air Lines, which formed a joint venture (JV) with Korean Air, are in place. Hoban also continues to state its purpose as “simple investment.”
[email protected] Kim Yun-ho Reporter