The management dispute of T’way Air has reportedly been resolved following negotiations between the largest and second-largest shareholders, leading to a sharp drop in T’way Air's stock price. (☞[Exclusive] T’way Air’s management dispute ends… YeaRimDang sells equity to DAEMYUNG SONO.)
T’way Air stock was traded at 3,070 won in after-hours transactions after the market closed at 4:20 p.m. on the 17th. It dropped 9.97% (340 won) from the closing price of 3,410 won, hitting the lower limit. The lower price limit during after-hours transactions is -10% compared to the closing price.
At the same time, Tway Holdings also fell to 849 won, down 9.68% (91 won) from its closing price of 940 won. Investors who had anticipated a rise in stock prices due to the management dispute appear to have sold off shares in response to the news of the agreement.
The stock price of DAEMYUNG SONOSEASON, which is reported to have secured management rights of T’way Air, surged. DAEMYUNG SONOSEASON shares were traded at 1,399 won in after-hours transactions, up 9.73% (124 won) from the regular market closing price of 1,275 won.
According to investment banking (IB) industry sources, YeaRimDang, the largest shareholder of T’way Air, has decided to sell its equity to DAEMYUNG SONO, the second-largest shareholder. This took place dramatically amid a situation that had hinted at a proxy fight in the upcoming regular shareholders' meeting.
According to the agreement between both sides, it is expected that Chairman Seo Jun-hyuk of DAEMYUNG SONO Group and the nine directors recommended by DAEMYUNG SONO Group as shareholder proposals will all enter the board of directors of T’way Air.