Shares of Tway Holdings and T'way Air surged at the beginning of trading on the 21st, following news that a management rights dispute had intensified. (☞[Exclusive] T'way Air management rights dispute begins… Daemyung Sono sends demands for management improvements)
On this day, shares of Tway Holdings were traded at 981 won on the KOSPI market at 9:15 a.m., rising 25.29% (198 won) from the previous day. At the beginning of trading, the stock price jumped to 1,017 won, reaching the upper limit (the maximum daily price increase). At the same time, T'way Air also recorded a stock price increase of around 7%.
It appears that investors flocked as the management rights dispute came to the fore. According to investment banking (IB) industry sources, Daemyung Sono Group sent a notice letter to T'way Air's management the previous day, demanding that they step down and secure funding 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 stands at 30.07%. Daemyung Sono Group is the second-largest shareholder, holding 26.77%.
Given that the equity gap between the largest and second-largest shareholders is not substantial, securing support from minority shareholders at the upcoming regular shareholders' meeting in March is expected to be crucial.
Bae Se-ho, a researcher at iM Securities, noted, "Considering that the current equity difference is only 2.97%, Daemyung Sono Group's intent to secure management rights is clear," and added, "It is anticipated that Daemyung Sono Group will criticize the current management and advocate for the necessity of capital increases to minority shareholders at the regular shareholders' meeting scheduled for March in order to secure voting rights."
He also stated, "If Daemyung Sono Group fails to secure a certain number of board members at this T'way Air regular shareholders' meeting, the difficulty of securing management rights for T'way Air could significantly increase in the future."