Tway Holdings' stock price has been strong for two consecutive days following news that a management dispute has officially begun. On the 22nd, it surged more than 20% in early trading.
As of 9:33 a.m. that day, Tway Holdings was trading at 1,224 won, up 207 won (20.35%) from the previous trading day. Following a 29.89% surge the day before, the stock continued its upward trend on the day.
At the same time, T'way Air was also trading at 3,455 won, up 2.83% from the previous trading day, and YeaRimDang was experiencing a strong gain of over 7%.
The influx of buying is interpreted as the management dispute comes to the surface. According to investment banking (IB) industry sources, Daemyung Sono Group reportedly sent a certified letter to T'way Air's management on the 20th of this month, demanding their resignation and requesting funds for aircraft maintenance through a capital increase. (☞[Exclusive] Management dispute at T'way Air begins... Daemyung Sono Group sends a request for management improvement)
Currently, the largest shareholders of T'way Air are Tway Holdings and YeaRimDang, with a combined equity ratio of about 30.07%. Daemyung Sono Group is the second-largest shareholder, holding 26.77%.
Given that the gap in equity between the largest and second-largest shareholders is not large, gaining support from minority shareholders at the upcoming regular shareholders' meeting in March is expected to be critical. Daemyung Sono Group is reported to be preparing for a vote against the largest shareholders (YeaRimDang and Tway Holdings) at the regular shareholders' meeting in March. Follow-up actions, such as requests for inspection of the shareholder register and shareholder proposals for director appointments, are expected to follow.