Seoul Southern District Court rejected an injunction application filed by minority shareholders of Hanyang Securities against the company's planned new stock issuance on the 8th. The shareholders sought to block a third-party allocation capital increase targeting the company's major shareholder. Hanyang Securities stated it respects the court's decision and will proceed with the capital increase as scheduled, citing the need for capital reinforcement to support new business initiatives. The company emphasized that the capital increase was decided to support new business expansion and pledged to enhance shareholder value through improved business performance and corporate value.
Seoul Southern District Court Rejects Shareholder Injunction Application
According to the financial investment industry on the 8th, Seoul Southern District Court Civil Division 51 rejected the injunction application filed by shareholders against Hanyang Securities seeking to halt the new stock issuance. Hanyang Securities stated it respects the court's decision and will proceed with related procedures according to schedule. The company confirmed that the payment date for the new shares is the 8th.
Hanyang Securities Plans 50 Billion Won Stock Issuance
Hanyang Securities resolved at a board meeting on the 25th of last month to conduct a third-party allocation capital increase targeting its major shareholder 'KCGI No. 2 Private Investment Limited Partnership.' The issuance consists of 2,380,952 new common shares worth approximately 50 billion won. The issue price is 21,000 won, representing a 12.9% premium over the base share price. The payment date for the new shares is the 8th, and the capital increase is expected to proceed as planned following the rejection of the injunction.
Shareholders Argued Commercial Act Violations
Creditors argued at the previous day's hearing that the capital increase does not meet the 'business purpose' requirement under Article 418 of the Commercial Act and violates Article 382-3, which stipulates directors' duty of loyalty to shareholders and equal treatment obligations. Hanyang Securities countered that preemptive capital reinforcement was unavoidable to defend its Net Capital Ratio (NCR) following approval for over-the-counter derivatives business.
FAQ
What did Seoul Southern District Court decide on the 8th regarding Hanyang Securities stocks?
Seoul Southern District Court Civil Division 51 rejected the injunction application filed by minority shareholders of Hanyang Securities seeking to halt the company's planned new stock issuance on the 8th.
How much capital is Hanyang Securities raising through this stock issuance?
Hanyang Securities is issuing 2,380,952 new common shares to its major shareholder 'KCGI No. 2 Private Investment Limited Partnership' at 21,000 won per share, raising approximately 50 billion won. The issue price represents a 12.9% premium over the base share price, with payment scheduled for the 8th.
Why did minority shareholders oppose Hanyang Securities' capital increase?
Minority shareholders argued at the previous day's hearing that the capital increase violates Article 418 of the Commercial Act (business purpose requirement) and Article 382-3 (directors' duty of loyalty and equal treatment). Hanyang Securities defended the move as necessary for Net Capital Ratio defense following over-the-counter derivatives business approval.
