Daesang Group's Sono International announced on the 22nd that it will intensify its management participation by demanding management improvements from T'way Air and requesting access to the shareholder register and shareholder proposals.
Sono International delivered a management improvement demand letter to T'way Air and its CEO Jeong Hong-geun on the 20th, requesting ▲ a complete overhaul of management ▲ a paid capital increase for the stable operation of T'way Air, while also requesting the submission of shareholder proposals for the regular general meeting scheduled for March and the inspection of the shareholder register on the 21st.
As of the 14th, the largest shareholders of T'way Air are Tway Holdings and YeaRimDang, with a combined equity ratio of 30.06%. Daesang Group, the second largest shareholder, holds a total equity stake of 26.77%, combining 16.77% from its holding company Sono International and 10% from its affiliate DAEMYUNG SONOSEASON. There have been continuous concerns about a management dispute as the equity ratio difference between the first and second largest shareholders is less than 3 percentage points.
Excluding the 2.91% from the employee stock ownership association, more than 40% of the remaining equity is held by minority shareholders. Therefore, the choices of minority shareholders are expected to influence the outcome of this regular general meeting.
Recently, Daesang Group established a task force (TF) for the airline business internally. The industry anticipates that Daesang Group will seek to enter the board of directors of T'way Air at the regular general meeting in March.
In this management improvement demand letter, Sono International stated, "T'way Air is currently unable to guarantee the reliability of aviation safety," and noted, "Considering the insufficient maintenance expense and personnel and the high rate of improvement orders due to aviation safety supervision, there is a lack of awareness regarding the importance of aviation safety."
It continued, "Due to the lack of operational reliability evaluated by the Ministry of Land, Infrastructure and Transport and the imposition of fines due to consecutive administrative measures, the brand image is being damaged," emphasizing the need for a comprehensive reassessment of safety.
Additionally, Sono International plans to request the agenda for the appointment of new directors through shareholder proposals and to establish a new board of directors to develop a stable airline operation strategy, maximize synergy between the airline and hospitality industries, and improve its financial structure.
Sono International stated, "Putting the growth of T'way Air and the enhancement of shareholder value as the top priority, proactive measures will be taken to maximize them," noting, "We have decided to deliver this management improvement demand and shareholder proposal in order to strengthen financial soundness and corporate competitiveness, establishing a foundation for long-term growth."
Seoh Jun-hyuk, chairman of Daesang Group, stated, "Using Daesang Group's rich domestic and international infrastructure to launch various products and enhance customer service will maximize customer satisfaction for T'way Air and contribute to enhancing shareholder value," adding, "We will make this entry into the airline industry a new growth driver for Daesang Group and strive to become a global leading company."
T'way Air noted in a brief statement regarding various demands from Sono International, "We are examining response measures from multiple angles."