KCGI Successfully Completes Tender Offer for Hanjin Kal Warrants... 2.84 Million Shares Gathered

[Asia Economy Reporters Jeongsoo Lim and Jehun Yoo] The private equity firm KCGI has succeeded in the public tender offer for Hanjin KAL's stock warrants. With KCGI acquiring additional stock warrants as targeted, the 'three-party alliance' including Bando Construction and former Korean Air Vice President Cho Hyun-ah is considered to have taken a step ahead in the competition to secure shares of Hanjin KAL.

According to the investment banking (IB) industry on the 12th, investors have expressed their intention to sell 2.84 million shares in the public tender offer for Hanjin KAL stock warrants conducted by KCGI from the 23rd of last month until this day. The amount KCGI announced it would purchase is 1.2 million shares, which is 33% of the currently circulating stock warrants. Stock warrants are securities that carry the right to purchase new shares of the issuing company at a predetermined price. One stock warrant allows the purchase of one share of the issuing company’s stock.

With KCGI’s successful tender offer, the three-party alliance has increased its holdings of Hanjin KAL stock warrants from 446,235 shares to 1,646,235 shares. Exercising the stock warrants allows them to acquire an additional 1.48% stake in Hanjin KAL at 82,500 KRW per share. The exercise of rights has been possible since the 3rd of this month. Currently, the three-party alliance’s stake in Hanjin KAL stands at 45.23%, slightly surpassing the combined stake of Chairman Cho Won-tae of the Hanjin Group and related parties (28.93%) and the white knight, U.S. Delta Air Lines (14.90%), which totals 43.83%.

This content was produced with the assistance of AI translation services.