KCGI "KDB Bank Opposes Hanjin KAL Third-Party Allocation Capital Increase... We Will Take Action"

"Hanjin Kal's Third-Party Allocation Rights Offering Can Only Be Interpreted as Friendly Shares for Existing Management"

[Asia Economy Reporter Yu Je-hoon] KCGI announced on the 15th its intention to participate in Hanjin KAL's rights offering. This move comes as a check against speculation that the Korea Development Bank might push for a third-party allotment rights offering to Hanjin KAL in order to facilitate Hanjin Group's acquisition of Asiana Airlines.

In a press release issued that day, KCGI stated, "If Hanjin KAL proceeds with the rights offering, the existing shareholder coalition will take priority in participating from a responsible management perspective, rather than a third-party allotment rights offering that wastes taxpayers' money."

KCGI strongly opposed the rumored third-party allotment rights offering by the Korea Development Bank to Hanjin KAL, which has been reported and accepted as a fait accompli by various media outlets recently. They argued, "If the goal is to strengthen competitiveness in the aviation industry through integration, support should be given to Korean Air. Issuing new shares to Hanjin KAL, a healthy company with a debt ratio of only 108%, can only be interpreted as an attempt to create friendly shares for Cho Won-tae (Chairman of Hanjin Group) and the existing management."

They added, "The shareholder coalition has repeatedly conveyed this intention to the company since May and has participated with over 1 trillion won in subscribing to Hanjin KAL's bonds with warrants," reiterating their willingness to participate in the rights offering.

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