Hanwha's stock price rose by more than 8% in the early trading on the 1st. It appears that buying momentum increased after it was revealed that Chairman Kim Seung-yeon decided to gift his equity to his three sons.
As of 9:33 a.m. on the 1st, Hanwha is trading at 44,250 won, an increase of 3,300 won (8.06%) compared to the previous day on the Korean securities market.
Hanwha announced that Chairman Kim Seung-yeon had gifted half of his equity to his three sons, which seems to have improved buying sentiment.
The company stated that it decided to donate equity to eliminate unnecessary controversy regarding management succession and focus on its core business. They explained that completing the succession through this equity donation would correct concerns about reducing Hanwha's corporate value for the merger of Hanwha and Hanwha Energy.
Analysts believe that the equity donation will resolve uncertainties regarding the stock price related to succession. Yang Ji-hwan, a researcher at DAISHIN SECURITIES, noted, "Due to a series of incidents, Hanwha's stock price had undergone a significant adjustment, but now the discount factors are diminishing, allowing for a reassessment of equity and operational value."
According to the electronic disclosure by the Financial Supervisory Service, after the gift, Chairman Kim's equity rate will change to 11.33%, while Vice Chairman Kim Dong-kwan will have 9.77%, and President Kim Dong-won and Vice President Kim Dong-sun will each have 5.37%.