Kim Dong-seon (김동선), head of future strategy and Hanwha M&S’s largest single shareholder, will make an additional tender offer for about 3.38 million common shares. Hanwha M&S said on Sunday that Kim filed a tender offer statement with the Financial Supervisory Service and disclosed it. Under the method, he will buy shares off-market from an unspecified number of shareholders at a fixed price over a set period. The purchase volume is about 4 percent of all common shares, marking a second offer following the first tender offer completed earlier this month.

The tender offer will run for 22 days from Sunday through Nov. 30. The offer price is 8,000 won per share, the same as in the first round. The funds to be used are about 27.0 billion won of Kim's personal money. The company said it decided on the additional tender offer to reduce losses for small shareholders and support the share price after continued volatility driven by external variables even after the first tender offer.

Kim said last month that he would launch a tender offer to buy 26,203,000 common shares at 8,000 won per share. In the first round, which ended earlier this month, he secured 22,975,541 shares, or 87.7 percent of the target. Hanwha M&S shares rose to 7,900 won on Nov. 3, right after the end of the first round, from 6,080 won just before the tender offer announcement. The company described the first tender offer as a step to ease shareholder concerns and as part of responsible management.

The KOSPI index and Hanwha M&S shares have fallen sharply recently due to the impact of U.S. midterm election results. The closing price on Nov. 6 slid to 7,000 won from 7,900 won on Nov. 3. Kim moved ahead with the second tender offer to protect small shareholders who are expected to face large losses, as a key executive and the largest single shareholder.

Hanwha M&S is a holding company for Hanwha Group's tech and life divisions, overseeing affiliates in both divisions. It was established in August this year through a corporate spin-off that distributed shares to existing shareholders, and listed on the main bourse in the same month. The tech division includes Hanwha Vision, Hanwha Semitech, Hanwha Momentum and Hanwha Robotics. The life division comprises Hanwha Galleria, Hanwha Hotel & Resort and Ourhome.

A Hanwha M&S official said, "It has not been long since the first tender offer ended, but we determined that urgent additional measures were needed due to concerns about losses for small shareholders and reduced investment," adding, "We will continue to review various measures to build market trust and enhance shareholder value."