Korean construction company Hoban Group has raised its stake in Hanjin KAL, the holding company of Korean Air parent Hanjin Group, to more than 20 percent, narrowing the gap with the controlling shareholder bloc led by Hanjin Group Chair Walter Cho to less than 1 percentage point.
In a regulatory filing Friday, Hoban disclosed that its stake in Hanjin KAL had risen to 20.15 percent from 18.46 percent, after affiliates purchased an additional 1.13 million shares on the open market.
The latest purchases lifted Hoban Hotel & Resort's stake to 8.34 percent from 6.81 percent, while Hoban Industrial increased its holding to 0.17 percent. Hoban Construction continues to hold 11.5 percent, and Hoban Co. holds 0.15 percent.
Hoban now trails the 20.57 percent stake held by Cho and related parties by just 0.42 percentage point, the thinnest margin on record. Cho himself holds a 5.78 percent stake.
Despite speculation that its steady share buildup could eventually set the stage for a hostile takeover, Hoban said in the filing that the latest purchases were purely "an investment," holding firm to its long-standing stance that it is not seeking management control.
Hoban became Hanjin KAL's second-largest shareholder in 2022 after acquiring a stake from private equity fund KCGI. It further expanded its holding in 2023 by purchasing a 5.85 percent stake from Pan Ocean.
In 2015, Hoban made a failed bid for Kumho Industrial, then the parent company of Asiana Airlines, after building a 6.16 percent stake the year before.
Even with Hoban's growing stake, Cho appears to retain a comfortable buffer through allied shareholders.
US-based Delta Air Lines, Korean Air's joint-venture partner, owns 14.9 percent of Hanjin KAL, while state-run Korea Development Bank holds 10.56 percent after backing Korean Air's acquisition of Asiana Airlines. Together with those allies, Cho's camp controls roughly 46 percent of Hanjin KAL.
The National Pension Service, which owns 5.46 percent, is also viewed as a potential swing shareholder should a future governance dispute emerge, industry officials say.
minmin@heraldcorp.com
