Hoban Group Adds to Hanjin KAL Stake, Raising Prospect of Largest-Shareholder Change

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[Korea Financial Times, Cho Beomhyung] Hoban Group has acquired additional shares in Hanjin KAL, the holding company of Hanjin Group, raising the possibility of a change in the company’s largest shareholder. Hoban has filed a business combination report with the Korea Fair Trade Commission (KFTC) and is under review, but its exact stake and whether it has become the largest shareholder have yet to be confirmed.

According to Hoban Group on Nov. 2, the group recently purchased more Hanjin KAL shares and filed a business combination report with the KFTC last month as a result. Hoban became the second-largest shareholder in 2022 by acquiring the Hanjin KAL stake held by private equity fund KCGI, and has since expanded its holdings through its affiliates.

Hanjin KAL’s semiannual report shows that, as of the end of June, the stake held by Hanjin Group Chairman Cho Won-tae and related parties stood at 20.57%, while Hoban’s side held 19.83%. In July, Hoban raised its stake to 20.15% through open-market purchases, narrowing the gap between the two sides to 0.42 percentage points.

“It is true that we have filed a business combination report and that the review is under way,” said an official at Hoban Construction. “We filed on the judgment that we could become the largest shareholder through the additional share purchases.” The official added, “At this point, it is difficult to confirm whether we are the largest shareholder or what our exact stake is,” and explained, “This should become clear through future disclosures.”

Korean Air said it is also checking the change in shareholdings. “We are still checking at this point, and we will only be able to grasp the exact shareholding status once the relevant disclosure is released,” a Korean Air official said.

Under the Monopoly Regulation and Fair Trade Act, a company above a certain size must file a business combination report if it acquires 15% or more of a listed company’s shares, or if it already holds 15% or more and becomes the largest investor for the first time through additional purchases.

Regarding media reports on Hoban Group’s becoming the largest shareholder, Hanjin KAL issued a provisional clarification disclosure (a disclosure made before the facts are confirmed) on the same day. The company said it will make a follow-up disclosure when specifics are confirmed, or by the 1st of next month at the latest.

With the KFTC’s business combination review under way, Hoban Group’s exact stake and whether the largest shareholder has changed are expected to be confirmed through future disclosures.