According to Hanwha M&S, Kim will purchase 16.06 million common shares from existing shareholders from Oct. 12 through Nov. 2 at 8,000 won per share. That is a 27% premium to the average price of about 6,300 won over the past month. Compared with the Oct. 8 closing price of 6,080 won, the premium is about 32%, exceeding the average tender offer premium over the past five years.
The company said the tender offer aims to enhance shareholder value and strengthen accountable management by key executives. "As a key executive overseeing Hanwha M&S's future strategy, Kim's tender offer demonstrates both his confidence in the future growth potential of the tech and life divisions and his commitment to accountable management," Hanwha M&S said.
Starting with this tender offer, Kim plans to pursue a range of measures to maximize shareholder returns and strengthen accountable management. He also plans to swiftly implement management strategies reflecting the characteristics of each business and market conditions to lead future markets and industries, and to actively seek synergies that can be developed into new businesses through various forms of collaboration among affiliates.
"The growth potential of Hanwha Group's tech and life divisions has not been fully reflected in the share price," a Hanwha M&S official said. "We expect Kim's tender offer to serve as a positive signal to the market and shareholders, significantly boosting shareholder value and corporate value."
Hanwha M&S, the holding company for Hanwha Group's tech and life divisions, was established in August this year through a spin-off of those divisions and listed on the Kospi market the same month. The tech division comprises Hanwha Vision, Hanwha Semitech, Hanwha Momentum and Hanwha Robotics, while the life division includes Hanwha Galleria, Hanwha Hotels & Resorts and Ourhome.