Tensions Rise in Korean Stock Market Over T'way Air Ownership Dispute
Creatrip Team
a year ago
Daemyung Sono Group is officially pursuing a takeover of T'way Air's management rights. This move has sparked potential hostile takeover concerns and a conflict with the current largest shareholder, Yerimdang. As Daemyung Sono becomes the second-largest shareholder with a 26.77% stake, close to Yerimdang's 30.06%, stock prices have surged, reflecting the market's sensitivity to potential changes in control. This ownership dispute traces back to financial struggles during COVID-19, leading to a significant recent acquisition by Daemyung Sono, making it a formidable contender to take control of T'way. The upcoming March shareholders meeting will be critical in deciding the future management of T'way Air, as both parties are unwilling to withdraw from the dispute, partly due to strategic interests in the airline industry for Daemyung Sono and diversification needs for Yerimdang.
