This article appeared on 'Signal,' a capital markets compass, at 5:30 p.m. on July 29, 2026.
Hann&Co., the largest shareholder of SK D&D (210980), will see its investment burden grow as it participates in a 136.7 billion won rights offering allocated to shareholders. The funds raised will be used entirely to repay debt, in a structure where the major shareholder effectively repays the company's debt on its behalf. The aftershocks of the credit issues that erupted at JoongAng Group and JR Global REIT have weighed as a negative factor.
According to the investment banking (IB) industry on the 29th, SK D&D recently held a board meeting and decided on a shareholder-allocated rights offering to issue 44.68 million common shares. The offering ratio of 240% exceeds twice the existing number of shares outstanding. The planned issue price is 3,060 won, about 21% below the closing price that day of 3,880 won. The final issue price will be set on October 6.
Of the rights offering proceeds reaching 140 billion won, Hann&Co.'s subscription portion is about 107.6 billion won, or 78.7% of the total. The remaining 29.1 billion won is the portion for minority shareholders, and no forfeited shares will be issued.
Hann&Co. secured management control of SK D&D last year by purchasing the remaining stake from SK Discovery at 12,750 won per share. This new share issue price is one-quarter of that level, indicating a sharp drop in corporate value over a short period. However, as it secures a large volume of low-priced new shares, Hann&Co.'s average acquisition cost will be lowered considerably.
The proceeds raised this time will be used to repay 62 billion won in private bonds and for a 74.7 billion won subrogation payment for intermediate payments by buyers of the Triarts Knowledge Industry Center in Gunpo. The private bonds mature on October 30. The subrogation payment arose as an obligation to fulfill a joint guarantee emerged after the balance loan was reduced following completion and contract cancellations continued.
The background of the rights offering, as stated by SK D&D in its securities registration statement, included a credit crunch triggered by JR Global REIT's failure to repay short-term bonds and JTBC's default on securitization loans. As investor sentiment for corporate bonds rated BBB or lower cooled amid the rehabilitation crisis of JoongAng Group affiliates, refinancing routes were blocked. Without the major shareholder's capital increase, the company could have reached a stage where it was unable to repay its debt.
Depending on the subscription results, Hann&Co.'s stake could rise. With SK D&D shares closing at the daily lower limit that day and the decline widening, some observe that a large amount of forfeited shares could arise. In the extreme case where minority shareholders do not subscribe to a single share, Hann&Co.'s stake could rise to a maximum of about 93%. It is in this context that Hann&Co. included in its securities registration statement the position that "there is no intention to delist through additional tender offers for the time being." This emphasized that the purpose of the rights offering is not voluntary delisting but stabilization of the financial structure.
Hann&Co.'s investment burden has grown. After investing about 280 billion won to acquire SK D&D, Hann&Co. recovered about 250 billion won by selling its stake in SK Eternix, lowering its net investment to around 30 billion won. However, with the acquisition of the remaining SK Discovery stake (74.2 billion won) and this capital increase (107.6 billion won), the net investment is estimated to swell back to around 200 billion won. A significant portion of the funds recovered through the Eternix stake sale is being reinjected.
"The major shareholder's capital injection can be seen as part of responsible management aimed at overcoming the difficulties the company faces," an IB industry official said.
