In a preemptive measure against tougher government regulation on unfair practices of large conglomerates, the family members of Korea’s Hanwha Group have shed their combined 45 percent stake in IT solutions company Hanwha S&C.
According to Hanwha S&C on Friday, a private equity fund dubbed STIC Special Situation Fund Consortium (STIC Consortium) operated by STIC Investments Inc. was chosen as the buyer of 44.6 percent stake in its IT solutions business at 250 billion won ($218 million).
Hanwha S&C will be split into two entities. The STIC Consortium will buy the 44.6 percent interest in the spun-off entity.
The remaining entity will serve as a holding company wholly-owning SK Energy and 55.4 percent in the business entity of Hanwha S&C.
Hanwha S&C is an unlisted company that offers system integration (SI) solution and software development service. Three sons of Hanwha Group Chairman Kim Seung-youn entirely owned the company - 50 percent held by the eldest and the other half shared by the two younger brothers.
After the demerger, the eldest - Kim Dong kwan, executive director of Hanwha Q Cell - will entirely own the holding entity. Hanwha S&C plans to further lower family owners’ shares in the spun-off entity.
Under the fair trade law, unlisted companies in which the owner family holds 20 percent or more, or listed companies with shares of 30 percent or higher come under scrutiny for internal trade.
By Kim Jung-hwan
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]