The dispute between the largest and second-largest shareholders regarding the management rights of T’way Air has been resolved. With YeaRimDang, the largest shareholder, agreeing to sell its equity to Daemyung Sono Group, Daemyung Sono will take control of T’way Air.
On the 17th, according to the investment banking (IB) industry, YeaRimDang and Daemyung Sono entered into dramatic negotiations to resolve their conflict over the management rights of T’way Air. As a result, Daemyung Sono has confirmed that it has withdrawn applications for provisional measures to propose items for the regular shareholders' meeting and to inspect and copy the shareholder registry.
Until last year, Daemyung Sono continued negotiations with YeaRimDang to acquire equity in T’way Air but ultimately could not reach an agreement. Last month, it initiated a management rights dispute by sending a request for business improvement to the current management (Related article☞ [Exclusive] T’way Air management rights dispute begins… Daemyung Sono sends request for business improvement). Daemyung Sono proposed nine individuals, including Chairman Seo Joon-hyuk, to enter the board of directors of T’way Air, with both sides planning to engage in a “vote contest” at the regular shareholders' meeting scheduled for next month.
YeaRimDang has reportedly decided to sell its equity and exit, despite considering various countermeasures, including appointing a law firm until recently. An IB industry official noted, “It seems they couldn't withstand the pressure from Daemyung Sono's offensive.” Due to the nature of the airline industry requiring significant investment, it was analyzed that it would have been reasonable to consider a sale now that a buyer has emerged, given the burdens they were feeling.
As both sides enter negotiations, Daemyung Sono is likely to be able to appoint nine directors to the board as intended at the regular shareholders' meeting next month.
Currently, Daemyung Sono holds approximately 26.77% of the equity in T’way Air. The gap in shareholding with the major shareholders, YeaRimDang and Tway Holdings, which have 30.06%, is only 3 percentage points (p). In addition, the National Pension Service and foreign investors hold 1.39% and 2.19%, respectively.