HANA Micron is showing strong gains of around 15% in early trading on the 30th, following the withdrawal of its spin-off plan.
As of 9:05 a.m. on that day, HANA Micron is trading at 12,890 won, up 1,700 won (15.28%) from the previous trading day.
On the 1st, HANA Micron announced plans for a spin-off to establish a new corporation by separating its semiconductor product packaging and testing division. It plans to split into HANA Semiconductor Holdings (tentative) managing investment business and HANA Micron overseeing semiconductor backend processes, with the aim for each corporation to be listed.
However, minority shareholders have raised concerns about this plan and have strongly opposed it, arguing that duplicate listings could undermine the value of existing shareholders. Following the announcement of the spin-off, HANA Micron's stock price plummeted by about 14%. Minority shareholders formed a shareholder coalition and filed a lawsuit to suspend the effect of the shareholder meeting that passed the spin-off agenda.
As the controversy surrounding the spin-off escalated to potential legal disputes, HANA Micron announced on the 29th that it would withdraw its spin-off plan. HANA Micron explained, "We determined that it would be challenging to proceed smoothly due to concerns from minority shareholders and various stakeholders, along with the court's decision to issue a suspension of the shareholder meeting's effectiveness."