Hankook & Company vows for good governance amid failed takeover bid

[Courtesy of Hankook & Company]

Hankook & Company emphasized its commitment on Tuesday to prevent further turmoil related to corporate governance issues. The commitment comes after a recent failed attempt by private equity fund MBK Partners to acquire the company’s management rights through a public takeover bid involving advisor Cho Hyun-shick.

In a statement, Hankook & Company vowed to enhance shareholder values, saying that it respects the judgment of shareholders on this matter and it will strive to improve shareholder value in the future.

Market observers interpret the statement as a gesture of gratitude to shareholders who supported defensive measures against hostile takeovers.

The company also outlined plans to prevent recurring management-related disruptions. Hankook & Company declared its intention to formally request a financial authority investigation into allegations of irregular share transactions ahead of MBK Partners’ tender offer announcement.

The protracted dispute within the Hankook & Company owner family concluded with current Chairman Cho Hyun-bum, the second son of Honorary Chairman Cho Yang-rae, prevailing in the power struggle.

However, legal battles concerning the company’s leadership are anticipated to persist. MBK Partners is seeking financial regulatory scrutiny due to suspicions of market price manipulation and potential breach of reporting obligations regarding Honorary Chairman Cho’s share acquisitions meant to support Chairman Cho.

Similarly, Hankook & Company revealed its plan to request a financial authority investigation into the sharp increase in its stock price on mass trading in August before the takeover bid.