[Alpha Biz= Kim Jisun] Hahn & Co. Development Holdings Co., Ltd. has once again failed to secure sufficient shares in its second tender offer this year aimed at delisting SK D&D.
According to a regulatory filing on December 30, the company received subscriptions for 209,731 shares, representing just 5.03% of the targeted 4,166,402 shares. The tender offer was conducted for the purpose of taking SK D&D private.
Hahn & Co., the largest shareholder of SK D&D, launched the offer to acquire the remaining shares excluding its existing holdings of 8,617,938 shares and 5,821,751 shares to be acquired from SK Discovery under a share purchase agreement (SPA). The tender offer ran from November 3 through December 26.
Following a failed attempt in October, the latest bid again fell short of meeting delisting requirements. Including the stake held by SK Discovery, Hahn & Co.’s total ownership rose only slightly from 77.56% to 78.69%. Under Korean regulations, a company must acquire at least 95% of outstanding shares, excluding treasury shares, to voluntarily delist.
Market observers attributed the weak response to the low tender offer price. Hahn & Co. offered 12,750 won per share in both tender offers this year—the same price paid for SK Discovery’s stake—equivalent to a price-to-book ratio (PBR) of just 0.39. This has drawn criticism that the bid significantly undervalued the company.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
