March 27, 2020 11:11
The National Pension Service has decided to vote with Hanjin Group chairman Cho Won-tae in a battle with his disgraced sister for control of the conglomerate that owns Korean Air.
The NPS holds the casting vote that would allow Cho to defeat a coup attempt from his sister and her posse of raiders at a shareholders' meeting on Friday.
The NPS holds a 2.92-percent stake in Hanjin KAL, the conglomerate's holding company.
That means the stake held by allies of Cho Won-tae rose from 37.24 percent to 40.16 percent, while the number of shares owned by his foes -- Cho Hyun-ah of "nut rage" notoriety, Bando Engineering and Construction and hedge fund Korea Corporate Governance Improvement -- stands at 28.78 percent.
Cho Won-tae earlier strong-armed his mother and other sister Cho Hyun-min into siding with him.
There is still a slim chance that he could be thrown into limbo with the support of small shareholders since he needs a simple majority of attendants at the meeting to survive. But if attendance is the expected 80 percent, he is safe.
Industry watchers expect the dispute to continue. The raiders' alliance appears to be planning to acquire additional stakes. On Tuesday, they said in a public notice that they acquired an additional 2.01 percent stake in Hanjin KAL.
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