Hansol Holdings Announces a Tender Offer of 18.53% Stake in Hansol Logistics

• After the market close on 20 May, Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics.

• The tender offer price is 3,000 won, which is 22% higher than the close price on 20 May. The tender offer period is from 21 May to 10 June.

• We have a positive view of this tender offer. Hansol Logistics trades at EV/EBITDA of 1.8x, P/E of 3.7x, and P/B of 0.6x based on 2023 figures.

After the market close on 20 May, Hansol Holdings (004150 KS) (118 billion won in market cap) announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics (009180 KS) (68.5 billion won in market cap).

Post tender offer, Hansol Holdings' stake in Hansol Logistics will increase from 21.5% (current) to 40%. Hansol Holdings is the holding company of the Hansol Group. Hansol Holdings is a holding company established in 2014 through the spin-off of the investment division of Hansol Paper, and is run by Chairman Cho Dong-gil.

The following are the key terms of the tender offer:

• Tender offer price - The tender offer price is 3,000 won, which is 22% higher than the close price on 20 May (2,440 won).

• Tender offer period - The tender offer period is from 21 May to 10 June.

• Number of shares for tender offer - The tender offer will be for 5.2 million shares of Hansol Logistics.