The Korea Development Bank (KDB) is selling part of its stake in Hanwha Ocean, as the price of Hanwha Ocean stocks has more than tripled, driven by a boom in the shipbuilding industry.
The sale also marks 25 years since it first acquired shares in the shipbuilder’s predecessor, Daewoo Heavy Industries, through a debt-to-equity swap in 2000.
The KDB conducted a book-building process on Monday to sell a portion of its shares in Hanwha Ocean through a block deal, according to the financial industry the same day. Out of the 19.5 percent stake held by KDB, equivalent to 59,738,211 shares, about 4.3 percent, or 13 million shares, were offered for sale in the demand survey.
The KDB plans to sell part of its stake now and eventually dispose of its remaining shares entirely. The sales will proceed sequentially through additional block deals depending on market conditions.
The bank’s move comes as the price of Hanwha Ocean stocks has more than tripled, jumping from 27,800 won ($19) per share on Nov. 6, the day U.S. President Donald Trump was elected president, to 89,300 won as of Monday’s closing price. The value of KDB’s stake has also risen to more than 5 trillion won.
The KDB expects the sale to help defend its Bank for International Settlements (BIS) capital adequacy ratio. As of the end of last year, KDB’s BIS capital adequacy ratio stood at 13.9 percent, barely exceeding the Financial Services Commission’s recommended level of 13 percent.
Source: Korea JoongAng Daily
