Kim Seung-yeon, chairman of Hanwha Group, has decided to donate half of his Hanwha equity to his three sons, causing Hanwha's stock price to rise. It seems that the expectation is reflected that he will not intentionally lower the corporate value of Hanwha for succession.
Hanwha shares traded at 41,650 won in the after-market on the 31st. This is an increase of 1.71% (700 won) from the closing price (40,950 won) that day and up 0.73% (300 won) from the previous day's closing price.
Hanwha announced that after the regular market closed that day, it would donate 11.32% of the 22.65% equity held by Chairman Kim Seung-yeon to his three sons. Vice Chairman Kim Dong-kwan will receive 4.86%, President Kim Dong-won 3.23%, and Vice President Kim Dong-sun 3.23%.
After the donation, the equity distribution will be 22.16% for Hanwha Energy, 11.33% for Chairman Kim Seung-yeon, 9.77% for Vice Chairman Kim Dong-kwan, 5.37% for President Kim Dong-won, and 5.37% for Vice President Kim Dong-sun. Considering that the three sons hold 100% of Hanwha Energy, it is explained by Hanwha Group that the equity stake will rise to 42.67%, finalizing the succession of management rights.
Hanwha Group stated, "With this equity donation, the misunderstanding that 'Hanwha Corporation will lower the corporate value of Hanwha Corporation for the merger with Hanwha Energy' will be corrected, and concerns about the impairment of shareholder value will also be resolved."