This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:22 p.m. on May 27, 2026.
KG Group, which converted Taihan Cable & Solution convertible bonds (CB) into shares on the 11th, is said to be preparing to carry out an after-hours block trade soon. However, because Taihan Cable & Solution's share price has since fallen sharply from its peak, the profit KG Group could pocket has shrunk by about 250 billion won.
According to the investment banking (IB) industry on the 27th, KG Dongbu Steel is reviewing a block deal for institutional investors for 9,545,296 shares of Taihan Cable & Solution equity recently converted.
On the 21st, KG Dongbu Steel exercised the conversion rights on Taihan Cable & Solution CB and acquired 9,545,296 common shares. The acquisition amount was 110 billion won, and the post-conversion equity stake is about 4.87%.
At the time, the CB received by KG Dongbu Steel was part of the proceeds from a real estate sale, but as Taihan Cable & Solution's share price surged, it turned into an asset capable of generating a large short-term investment gain. Taihan Cable & Solution's share price soared on expectations for the submarine cable business and increased investment in power grids. As recently as early this year, it fluctuated in the low 20,000-won range, but on the 11th it climbed intraday to as high as 75,900 won. Based on that, the value of KG Dongbu Steel's equity holdings comes to about 720 billion won.
However, Taihan Cable & Solution's share price has since corrected quickly as profit-taking followed the short-term spike. On the 27th, it closed at 49,550 won. Based on that, the value of KG Dongbu Steel's equity holdings is about 470 billion won, down 250 billion won from the peak. Considering that block deals typically carry a discount of 5% to 10%, the cash KG Dongbu Steel could actually secure by selling the Taihan Cable & Solution equity is estimated to be less than that.
From KG Group's standpoint, the sharp drop in Taihan Cable & Solution's share price is disappointing, but observers say it is unlikely to significantly disrupt funding for the K Car acquisition.
KG Dongbu Steel initially agreed to acquire a 72.19% management-control equity stake in K Car held by Hahn & Company for about 550 billion won, but after the deal structure changed, the target equity stake was reduced to 52.5% and the burden to about 400 billion won.
Based on the current share price, KG Dongbu Steel's proceeds from selling its Taihan Cable & Solution equity are estimated to exceed 400 billion won even after applying a block deal discount. In addition, by using its roughly 100 billion won in cash on hand and acquisition financing, the company is expected to have little difficulty securing the acquisition funds.
However, an IB industry official said, "Depending on the price at which KG Dongbu Steel disposes of the Taihan Cable & Solution equity, its financial burden and capacity for additional investment after acquiring K Car could vary."