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Hanon system. (photo = Hanon system) |
[Alpha Biz= Reporter Kim Sangjin] The acquisition of Hanon Systems by Hankook Tire & Technology has reached a significant milestone, leading to a sharp decline in the stock prices of both companies.
As of October 3, Hanon Systems closed at 3,865 KRW, down 390 KRW (9.17%) from the previous trading day. The stock exhibited weakness from the opening bell, further declining as foreign investors offloaded shares, resulting in a total sale of 22 billion KRW for the day. Institutional investors also contributed to the downtrend, with a net sell of 3.3 billion KRW.
Hankook Tire also saw a decline, closing at 38,650 KRW, down 2,800 KRW (6.76%). Similar to Hanon Systems, Hankook Tire's stock fell approximately 3% right after the market opened, influenced by selling pressure from both institutional (5.9 billion KRW) and foreign investors (6.0 billion KRW). Over the past three days, the stock has dropped more than 10%, following declines on the 27th and 30th of last month.
On September 30, Hankook Tire's board approved the acquisition of Hanon Systems, adjusting the ownership stake from 25% to 23% and lowering the acquisition price from 10,250 KRW to 10,000 KRW per share. This adjustment means that Hankook Tire will purchase shares worth 1.22 trillion KRW, a 10.2% reduction from the previous valuation of 1.37 trillion KRW.
To facilitate this acquisition, Hankook Tire plans to increase its capital through a rights issue, expanding the scale of newly issued shares from the initial 365.1 billion KRW to approximately 600 billion KRW. As a result, Hankook Tire's total stake in Hanon Systems will rise to 54.77%, reflecting an increase of 4.24 percentage points since the initial announcement in May.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
