[Edaily Reporter Kim Ji-woo ] Kim Dong-seon, President of Future Strategy at #Hanwha Machinery & Service Holdings (Hanwha M&S), is launching an additional tender offer for Hanwha M&S shares, investing approximately 27 billion won. After failing to meet the target volume in the previous tender offer, he is pursuing another attempt to secure shares just one week later.

According to the Financial Supervisory Service’s electronic disclosure system on the 9th, President Kim will conduct a tender offer for 3.38 million shares of Hanwha M&S common stock (representing a 4.0% stake) from today through the 30th. The purchase price is 8,000 won per share, the same as in the previous tender offer. The maximum amount of funds to be invested in this tender offer is 27.04 billion won.

This tender offer is a follow-up measure after the company failed to secure the full target volume during the first tender offer, which ran from the 12th of last month to the 2nd of this month. At that time, President Kim had planned to purchase 26,203,000 shares of Hanwha M&S common stock, but the actual number of shares tendered was 22,975,541, amounting to only 87.77% of the target. The shortfall amounted to approximately 3.23 million shares.

President Kim has decided to purchase an additional 3.38 million shares, a volume similar to the shortfall. The move is intended to continue the previously stated goals of strengthening responsible management and enhancing shareholder value.

He also cited the protection of minority shareholders amid the recent sharp decline in the domestic stock market as a reason for the additional tender offer. In his filing, President Kim stated that, given the increased investment uncertainty and concerns about losses due to falling stock prices resulting from heightened market volatility, he would once again provide minority shareholders with an opportunity to sell their shares.

Hanwha M&S’s stock price traded between 6,720 and 7,900 won (based on closing prices) from the 2nd to the 6th of this month. The tender offer price of 8,000 won is higher than the highest closing price during that period.

The funds for the tender offer will be entirely provided from President Kim’s personal funds. The purchase amount of 27.04 billion won has been deposited into an account at NH INVESTMENT & SECURITIES. If the volume of shares tendered falls short of the target amount, all tendered shares will be purchased; if it exceeds the target, purchases will be made on a pro-rata basis. The settlement date is the 2nd of next month.

If the tender offer is completed as planned, President Kim’s personal ownership stake in common stock will increase from the current 32.99% to 36.99%. Assuming that related parties do not participate in the tender offer, the combined ownership stake of President Kim and related parties is also expected to rise from 75.51% to 79.51%.

President Kim explicitly stated that he is not considering voluntary delisting following this tender offer. He also noted that there are currently no separate plans for corporate restructuring, such as mergers, spin-offs, or the sale of major assets. However, he left open the possibility of reviewing corporate restructuring measures—such as acquiring additional stakes in subsidiaries or conducting mergers—within two years of establishing a holding company this August, in order to comply with the provisions of the Fair Trade Act regarding holding companies.

In the disclosure, President Kim stated, “Based on a stable ownership stake following the tender offer, I will do my utmost to strengthen Daesang’s competitiveness and enhance its corporate value.”