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Hanwha Building in Janggyo-dong, Seoul. (Photo courtesy of Hanwha Group) |
[Alpha Biz= Paul Lee] SEOUL, July 7 — Minority shareholders of Hanwha Corporation’s first series of preferred shares have filed a formal petition with the Presidential Office, urging the government to intervene in what they claim is a deliberate attempt by the company to delist the shares and expel minority investors.
According to ACT, an online shareholder advocacy platform supporting the group, the minority shareholder alliance alleged that Hanwha intentionally retired just enough treasury shares to fall 967 shares short of the 200,000 minimum required to maintain listing status. The group claims this shortfall is a calculated move to trigger delisting procedures for the preferred shares.
Lee Sang-mok, head of ACT, stated, “Hanwha has taken no action to protect minority shareholders and remains unresponsive to mounting concerns. Such disregard amounts to a betrayal of investors who have placed long-term faith in the value of Hanwha's preferred shares.”
The alliance is calling on Hanwha to either offer shareholders the right to convert preferred shares into common stock or conduct a new tender offer at a price reflecting the net asset value.
On June 23, Hanwha disclosed that if the number of outstanding first preferred shares remains below 200,000 by the end of the first half of the year—currently at 199,033—delisting procedures will begin this month. The move does not affect Hanwha’s common stock or third series of preferred shares.
In response, Hanwha stated, “The decision was made as a proactive step to protect shareholders,” adding that “the representative of the minority shareholders may instead be exploiting the delisting process to intentionally profit from market fluctuations.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
