[COVER STORY] Ownership battle over Korean Air fuels stock premium, volatility
Hoban Group is facing a strategic dilemma over its next move in its ongoing ownership battle with Hanjin Group Chairman Cho Won-tae, as sharp swings in Hanjin KAL’s stock make it increasingly costly for either side to keep buying shares to maintain the top shareholder position. Hoban became Hanjin KAL’s largest shareholder on Nov. 4 after increasing its stake to 20.69 percent, narrowly overtaking…
![[COVER STORY] Ownership battle over Korean Air fuels stock premium, volatility](/img/19782276)
The ownership dispute between Korean Air's Hoban Group and Hanjin Group is causing significant volatility in Hanjin KAL's stock price. Hoban currently holds the largest share at 20.69 percent, just ahead of Cho Won-tae and his associates who own 20.58 percent. The stock surged to a record high of 245,000 won on Tuesday before falling as low as 185,000 won on Thursday. It closed at 203,500 won on Friday.
This turbulence is making it more expensive for either side to maintain their current share positions. Hoban has three options moving forward. One possibility is to sell its stake in a block deal. They could negotiate with Cho around the annual shareholders meeting in the coming year about halting further purchases and participating in Hanjin KAL's board if an agreement is reached.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
