Hanjin KAL's share price is rising sharply in early trading on the 3rd, after Hanjin Group Chairman Cho Won-tae moved to buy additional shares amid speculation that Hoban Group could become Hanjin KAL's largest shareholder.
As of 9:12 a.m. on the day, Hanjin KAL traded at 144,400 won, up 7.12% from the previous session. That follows a gain of about 16% the previous day, making it two straight days of strength. The preferred stock, Hanjin KAL Preferred, hit the daily upper limit the previous day and is also up about 21% today.
Chairman Cho disclosed the previous day that he plans to buy 325,000 common shares of Hanjin KAL for 37.05 billion won in an after-hours block trade. He cited strengthening responsible management as the purpose of the purchase. When the transaction is completed, the stake of Cho's side, including related parties, will rise from 20.57% to 21.06%.
According to industry sources, Hoban Group has recently bought more Hanjin KAL shares and is said to hold a larger stake than the holdings of Chairman Cho and related parties (20.57%). Judging that it may have overtaken Cho's stake, Hoban Group is reported to have completed a business combination filing under the Fair Trade Act last month and to be awaiting the review result.
The industry believes Hoban Group has various purposes in mind going forward, such as participating in management or making capital gains.