The long-running management control dispute at Manho Rope & Wire has ended. MK Asset, the No. 2 shareholder that had been in conflict with the existing management, changed its purpose for holding the equity to "simple investment." The company has welcomed a new largest shareholder and at the same time freed itself from the management control dispute.
According to the industry on the 17th, MK Asset, the No. 2 shareholder of Manho Rope & Wire, recently informed the company that it would change its purpose for holding the equity to "simple investment." MK Asset and all persons in a special relationship said that during the period they hold the shares, they will exercise only the rights guaranteed by law, not engage in activities to influence management control.
At the same time as changing the purpose for holding the equity, MK Asset is also said to be withdrawing all lawsuits filed against the company. In addition, MK Asset's (including persons in a special relationship) equity holding fell to 18.81% from the previous 23.62% due to the dissolution of special relationships, among other factors. MK Asset is expected to dispose of the remaining equity in stages.
The management control dispute that continued for the past two years has been wrapped up because of a change in the largest shareholder. Manho Rope & Wire announced on Oct. 10 that it would sell the largest shareholder's equity to An Byung-du, who led KOSDAQ-listed Shinsung ST. (Related article: What happened at Manho Rope & Wire amid a management control dispute?... Former Shinsung ST CEO takes over)
On the 11th, the largest shareholder of Manho Rope & Wire changed to MH Group Holdings. MH Group Holdings is a company 100% owned by CEO An Byung-du. CEO An acquired 24.82% equity from former largest shareholders including Manho Rope & Wire CEO Kim Sang-hwan at 60,798 won per share. Although the original contract was scheduled to be completed at the end of Feb. next year, the change in the largest shareholder occurred sooner than expected.
The industry expects that with the change in the largest shareholder, the company will enter a new growth phase and implement shareholder return policies. The company recently moved to secure funds to prepare for new businesses, while also deciding to buy back treasury shares for cancellation. In particular, inside and outside the company, attention is on the possibility of a face-value split, which small shareholders had demanded.
MK Asset also appears to have judged that it is difficult to continue the long-running management control dispute now that the owner of the company has changed. As the prolonged dispute continued, MK Asset's financial burden also grew. Although its equity ratio decreased recently, as of last month MK Asset still held 23.62%, not far from the largest shareholder's 24.82%. MK Asset aggressively increased its equity and filed multiple lawsuits.
MK Asset, led by investor Bae Man-jo, known as a "super ant," has mainly invested in "locked-up stocks" with low free float. Manho Rope & Wire was targeted for the same reason, and as the long management control dispute dragged on, a huge amount of capital has been tied up.
A company official said, "With the change of the largest shareholder and the end of the management control dispute, the company can focus on strengthening business competitiveness and investing in new businesses."