Cho Hyun-ji, a researcher at DB Financial Investment, said on the 16th that there is nothing wrong with BH's decision to dispose of all its treasury shares through methods such as issuing exchangeable bonds (EB), a block deal (after-hours bulk trade), and cancellation.
BH decided to dispose of all 3.65 million treasury shares it holds. This is equivalent to 10.6% of the total number of shares issued. Among the treasury shares, 1.25 million shares (3.6%) will be issued as EB, 1.65 million shares (4.8%) will be sold via a block deal, and the remaining 750,000 shares (2.2%) will be canceled.
Researcher Cho first viewed the possibility of exchange requests or dilution pressure as limited, as the EB exchange price was set at 21,600 won, which reflects a 19% premium to the current share price. She added, "If BH's share price reaches a level above the exchange price, dilution could occur due to exchange requests, so there will be medium- to long-term upward-pressure constraints on the share price."
Cho also projected that the impact on BH's share price would be milder, as the block deal, unlike in typical cases, is being carried out without a discount. Although relatively small in volume, the company is also moving to enhance shareholder value by canceling treasury shares.
Cho said, "Given that BH's share price has risen 43% over the past three months, a short-term correction is possible," but added, "Even considering the burden from the block deal and EB, medium- to long-term downside pressure should be limited when taking into account that the purpose of the fundraising is debt repayment and securing investment resources."