Daeho Development, Hanyeong Development, and Bando Development, which are Bando Engineering & Construction’s subsidiaries, announced on Oct. 8 that their combined shareholding in Hanjin KAL rose from 4.99 percent 5.06 percent as Hanyeong Development bought 40,000 shares at 27,481 won per share. The shareholding is divided into Daeho’s 2.46 percent, Hanyeong’s 1.75 percent and Bando’s 0.85 percent.
Bando Engineering & Construction was founded 35 years ago in Busan City. Hanjin KAL is the holding company of Hanjin Group. The subsidiaries said that their shareholding is simply for the purpose of investment, and they have no intention of taking part in its management.
According to some insiders, however, the subsidiaries are on the side of KCGI, which is the activist fund that is the second-largest shareholder in Hanjin KAL. This implies management disputes may arise down the road. The combined shareholding of Bando and KCGI, 21.04 percent, exceeds that of the late chairman Cho Yang-ho, who is the largest shareholder.
“The cashable assets of Bando Engineering & Construction and its subsidiaries are not that large and, as such, additional share acquisition is rather unlikely,” one of the insiders said, adding, “KCGI, in the meantime, may increase its shareholding via multiple firms like Bando.”