Hanmi Science (008930) is trading higher amid the prospect of a management control dispute between the founding family of the Hanmi Pharmaceutical (128940) group and Shin Dong-kuk, chairman of Hanyang Precision and the company's largest individual shareholder.
Hanmi Science shares were trading at 34,450 won, up 2,800 won, or 8.85%, from the previous session's close, according to the Korea Exchange on Wednesday. The gain is attributed to a disclosure the previous day that Shin would acquire 3,604,799 Hanmi Science shares for 172.7 billion won in an off-market transaction. Shin agreed to purchase the shares from six people, including Hong Ji-yoon, the wife of Lim Jong-yoon, chairman of Coree Group and the eldest son of the Hanmi Pharmaceutical group, at a price of 47,920 won per share — about 51% higher than the previous session's close of 31,650 won.
As of the disclosure date, Shin's stake in Hanmi Science stood at 22.88%. After the transaction, Shin's stake will rise to 28.15%. Including the 6.95% stake held by Hanyang Precision, the stake on Shin's side amounts to about 35.1%.
The share purchase is interpreted as a move to check the founding family of the Hanmi Pharmaceutical group. Lim Jong-hoon, CEO of Hanmi Fine Chemical and the group's second son, recently expressed his intention to carry on his late father's founding spirit together with his mother Song Young-sook, chairwoman of the Hanmi Pharmaceutical group, and his sister Lim Ju-hyun, vice chairwoman of the group. At the same time, Lim sold a 2.5% stake in Hanmi Science to NOW IB Fund, known to be an ally of the mother-and-daughter side.
The founding family of the Hanmi Pharmaceutical group holds a 24.23% stake in Hanmi Science. Adding the 9.81% stake of Ladepenses (Killington LLC), an ally of the mother-and-daughter side, brings the total to 34.04%, and including the 6.09% stake held by the Lim Sung-ki Foundation and the Gahyeon Culture Foundation raises it to 40.13%.
