The Korea Development Bank (KDB) has initiated the partial sale of its stake in Hanwha Ocean, capitalising on a sharp rise in the company’s stock price amidst a shipbuilding boom. This move also commemorates the bank’s 25-year involvement in the company, tracing back to its acquisition of shares in Hanwha Ocean’s predecessor, Daewoo Heavy Industries, in 2000.
Stock Value Triples Amid Industry Growth
Hanwha Ocean’s share price has surged over threefold, rising from 27,800 won ($19) on November 6 to 89,300 won as of this Monday. This surge has boosted the value of KDB’s 19.5% stake to over 5 trillion won, making it a timely moment for the bank to begin its exit strategy.
Strategic Stake Sale to Improve Capital Ratios
KDB’s move is also intended to strengthen its Bank for International Settlements (BIS) capital adequacy ratio, which stood at 13.9% at the end of last year—only slightly above the Financial Services Commission’s recommended minimum of 13%. By selling part of its shares, the bank aims to boost this ratio and reinforce its financial position.
First Block Deal Completed
On Monday, KDB conducted a book-building process to sell part of its holdings via a block deal, offering about 13 million shares, which equates to 4.3% of Hanwha Ocean’s total shares. The bank plans to sell its remaining stake of 19.5% in phases, depending on market conditions, through future block deals.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Korea JoongAng Daily
