Kim Dong-won, president of Hanwha Life Insurance coverage, and Kim Dong-seon, vice chairman of Hanwha Inns & Resorts – members of the Hanwha Group’s controlling household – are set to promote a mixed 20% stake in Hanwha Vitality in a deal value a complete of 1.1 trillion received (roughly 745.26 million). The transfer is meant to fund reward tax funds arising from the father-to-son switch of Hanwha Group Chairman Kim Seung-youn’s stake in Hanwha Corp. As well as, the brothers plan to make use of the proceeds to additional purchase stakes in key associates in areas corresponding to finance and meals and beverage (F&B), thereby strengthening their management and investing in new companies.
In line with funding banking sources on Dec. 16, Kim Dong-won and Kim Dong-seon will promote 5% and 15%, respectively, of Hanwha Vitality to a consortium led by Korea Funding Personal Fairness (PE). The implied enterprise worth of Hanwha Vitality is estimated at 5.5 trillion received on a 100% foundation. The consortium consists of Korea Funding & Securities and Daishin Securities, which plan to accumulate the shares solely with fairness capital – 500 billion received from Korea Funding PE and 600 billion received from the 2 securities corporations mixed – with out utilizing acquisition financing.
Hanwha Vitality is an unlisted affiliate of Hanwha Group, owned 50% by Hanwha Group Vice Chairman Kim Dong-kwan, the eldest son of Hanwha Chairman Kim Seung-youn, and 25% every by Kim Dong-won and Kim Dong-seon. It’s considered a core affiliate that performs a key function in controlling Hanwha Group. The main shareholders of Hanwha Corp. are Kim Seung-youn holding 11.33%, Kim Dong-kwan 9.77%, Kim Dong-won 5.37%, and Kim Dong-seon 5.37%. As well as, Hanwha Vitality holds a 22.15% stake in Hanwha Corp., the group’s de facto holding firm. Kim Dong-kwan is excluded from the present stake sale, additional solidifying his place because the group’s successor.
In April this yr, Chairman Kim Seung-youn gifted half of his 22.65% stake in Hanwha Corp. to his three sons. Underneath the transaction, Kim Dong-kwan acquired 4.86%, whereas Kim Dong-won and Kim Dong-seon every acquired 3.23%. The reward tax incurred on the transferred 11.32% stake is estimated at roughly 297.5 billion received. Market observers anticipate Hanwha Group’s founding household to make use of proceeds from the stake sale not solely to settle reward tax obligations but additionally to extend possession in key associates and strengthen managerial management, whereas channeling funds into new progress companies.
