Hanssem Sells Majority Stake to IMM Private Equity (Comprehensive)

Hanssem Sangam Building.
[Photo by Hanssem]

[Asia Economy Reporter Kim Jong-hwa] Hanssem, the No. 1 furniture company in Korea, announced on the 14th that it has signed a memorandum of understanding (MOU) to sell the shares held by its founder and honorary chairman Cho Chang-geol and related parties to the private equity firm IMM Private Equity (IMM PE).

The shares to be sold include all shares held by Chairman Cho and related parties. As of the end of March, Chairman Cho holds 15.45% of the shares, and the total shares held by related parties amount to 30.21%.

According to the MOU, IMM PE has been granted exclusive negotiation rights and will conduct due diligence on Hanssem. If Hanssem and IMM PE sign the final contract in the second half of the year, IMM PE will become the major shareholder of Hanssem.

Hanssem stated, "Chairman Cho has found an investor with a strategic vision who recognizes the company's vision and future value," adding, "We have signed the MOU for the transfer of shares with IMM PE, which we consider a partner that can help maintain management stability while supporting long-term growth."

If the share sale proceeds as planned, Chairman Cho’s plan to contribute his major shareholder assets back to society to aid Korea’s future development is expected to accelerate.

In March 2015, Chairman Cho announced that he would donate half of his personally held Hanssem shares, approximately 2.6 million shares, to the Taejae (泰齋) Foundation (formerly Hanssem DB View Research Foundation). To date, he has donated a total of 1.66 million shares, and the donation will be completed with the remaining shares through this sale.

The Taejae Foundation is a public interest corporation established in May 2012 by Chairman Cho to develop strategies for pioneering Korea’s future and to nurture leaders who will guide the future world and Korea.

Furthermore, by selling the company’s shares and management rights to an investor with a strategic vision rather than passing them on to his children, Chairman Cho has not only set a new precedent in the culture of corporate management succession but is also expected to contribute to establishing a more advanced professional management system.

Hanssem has adhered to the management principle of separating ownership and management through a professional management system since 1994.

Hanssem plans to continue pursuing its existing business and long-term management goals without change, including creating successful online-centered models based on its offline strength in the Rehouse business, advancing into a global company beyond the domestic market, and leading the future digital era centered on smart homes. It is also reported that there will be no artificial restructuring, with 100% employment retention for employees.

A Hanssem official explained, "The final contract conclusion, final sale price, and specific sale conditions will be confirmed after due diligence."

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