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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] Hyosung Group's holding company, Hyosung Corporation, has acquired additional shares of Hyosung Advanced Materials, which will be incorporated into the newly established holding company, HS Hyosung, ahead of the planned spin-off on July 1st.
According to the Financial Supervisory Service on the 27th, Hyosung purchased 36,060 shares of Hyosung Advanced Materials from June 19th to 26th. This acquisition slightly increased Hyosung's stake in Hyosung Advanced Materials from 22.25% to 23.33%.
This purchase drew attention as it came just five days before the spin-off. Although the amount of shares acquired is not significant enough to notably impact the overall governance structure, it is expected to positively contribute to stabilizing the control of HS Hyosung, led by Hyosung Vice Chairman Cho Hyun-sang.
According to the amended Fair Trade Act introduced at the end of 2021, holding companies must own at least 30% of the shares in their listed subsidiaries. While existing holding companies only need to meet the old requirement of 20%, newly established holding companies must comply with the current requirement. If the company is split through a spin-off, the new holding company retains the existing control over its subsidiaries. For HS Hyosung, this means that it will need to acquire approximately an additional 7% of Hyosung Advanced Materials' shares after the spin-off to meet the requirement.
Hyosung has already been preparing for this, gradually accumulating shares of Hyosung Advanced Materials since December of last year. Considering that Hyosung's stake in Hyosung Advanced Materials was 21.2% at the end of June last year, the company has purchased about 2% of shares from the market over the past year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
