Hanyang Hakwon Facing Financial Deterioration Decides to Sell Hanyang Securities Shares

1,437,590 Shares Sold Out of 2,074,010 Common Shares
All Preferred Shares Sold

The school foundation Hanyang Academy is disposing of Hanyang Securities shares worth 16,560,860,000 KRW. After the sale, Hanyang Academy's stake in Hanyang Securities will decrease from 16.29% to 4.99% based on common shares.

According to the education and financial investment sectors on the 19th, Hanyang Academy held a board meeting on the morning of the 9th to deliberate and approve this agenda.

According to the meeting minutes, Hanyang Academy plans to dispose of 1,437,590 shares, which is 69% of the 2,074,010 common shares of Hanyang Securities it holds, at 10,803 KRW per share, and to sell all 76,435 preferred shares at 13,483 KRW per share.

The disposal price per share was based on the average stock price over the previous four months. If the sale proceeds as planned, Hanyang Academy's stake in Hanyang Securities will decrease from 16.29% to 4.99% based on common shares. The combined stake including related parties will also shrink from 40.99% to 29.69%.

The reason for the stock disposal is due to financial difficulties in the corporation and its affiliated institutions caused by the resident doctors' strike and other factors. Hanyang Academy stated, "The university has been struggling financially due to a tuition freeze that has lasted 16 years, and the medical center has been operating at a deficit for several years due to aging hospital facilities and poor medical conditions. On top of that, the resident doctors' strike has further worsened the medical center's finances."

Meanwhile, Hanyang Securities announced through a disclosure on the same day, "Specific sale procedures will proceed after the Ministry of Education's approval decision," and added, "We will re-disclose within one month or when specific details are decided regarding this matter."

Hanyang Securities is a small to mid-sized securities firm ranked 30th in equity capital as of last year. It has strengths in bonds, asset management, and investment banking (IB). If the sale is completed, the ownership will change for the first time in 68 years since its establishment in 1956.

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