Shares of T’way Air soared in after-hours trading, reaching the upper limit (the highest daily price limit) following news that a management rights dispute had intensified. (☞[Exclusive] T’way Air management rights dispute begins… Daemyung Sono sends improvement demands)
On that day, T’way Air shares closed at 3,370 won in after-hours transactions. This is 9.95% (305 won) higher than the closing price of 3,065 won. Shares of Tway Holdings also closed at 861 won in after-hours trading, up 9.96% (78 won) from the closing price. The upper limit for after-hours transactions is 10% compared to the same day's closing price.
The rapid increase in stock prices appears to be related to the potential for a management rights dispute. According to the investment banking industry, Daemyung Sono Group sent a certified mail to T’way Air's management on that day, demanding they step down and secure funds for aircraft maintenance through a capital increase.
Currently, the largest shareholders of T’way Air are Tway Holdings and YeaRimDang. The combined equity stake of the two companies is approximately 30.07%. Daemyung Sono holds 26.77%, making it the second-largest shareholder.
Earlier, Daemyung Sono attempted to negotiate for the acquisition of the largest shareholder's equity stake, but it is reported that the talks broke down. Daemyung Sono plans to take follow-up actions, including petitions for the inspection of the shareholder registry and shareholder proposals for board appointments, in preparation for the regular shareholders' meeting scheduled for March.
Given that the equity gap between the largest and second-largest shareholders is not substantial, it is expected that the crucial factor will be how minority shareholders decide to vote.