DAEMYUNG SONOGROUP is negotiating to acquire equity in T'way Air, the largest shareholder YeaRimDang, which has led to declines in the stock prices of T'way Air, DAEMYUNG SONOSEASON, and YeaRimDang during the early trading hours on the 18th.
As of 9:27 a.m. on the same day, T'way Air is trading at 2,795 won, down 615 won (18.04%) from the previous trading day.
According to investment banking (IB) industry sources the previous day, YeaRimDang and DAEMYUNG SONO have resolved their conflict over T'way Air's management rights and have entered into dramatic negotiations. DAEMYUNG SONO has reportedly withdrawn all legal requests, including a provisional injunction to present agenda items for the regular shareholders' meeting and requests for inspection and copying of the shareholder register. (☞[Exclusive] T'way Air management rights dispute ends… YeaRimDang sells equity to DAEMYUNG SONO)
This news of the resolution of the management rights dispute is interpreted as leading to heavy selling pressure. DAEMYUNG SONOSEASON and YeaRimDang are also down 12.94% and 0.45%, respectively, at the same time.
Until last year, DAEMYUNG SONO was negotiating with YeaRimDang to acquire equity in T'way Air but ultimately could not find a point of agreement. Consequently, last month, they initiated a management rights dispute beginning with a request for management improvements directed at the current management.
DAEMYUNG SONO has proposed that nine individuals, including Chairman Seo Jun-hyuk, be seated on the board of directors of T'way Air. Both sides were set to engage in a 'vote contest' at the regular shareholders' meeting scheduled for next month.
YeaRimDang has considered various response measures, including appointing a law firm, but has ultimately decided to sell its equity and exit.