1. What Happened? – Analysis of the Major Shareholder Divestment
MYH, the major shareholder of Western T&D, reduced its stake from 52.89% to 52.42%, a decrease of 0.47%, on September 25, 2025. This was a result of a combination of factors, including the rollover of secured loans, partial exchange of convertible bonds (EB), and on-market sales by LEE DIANE MIEHYE and Park Mi-yeong.
2. Why the Divestment? – Background and Market Impact
MYH’s divestment is likely due to a combination of financial reasons and potential shifts in individual investment strategies. The rollover of secured loans could indicate efforts to secure financial liquidity, while the EB exchange might be part of capital structure adjustments. The stock sales are likely based on the individual shareholders’ investment decisions. This divestment could negatively impact stock prices in the short term.
3. Western T&D’s Fundamentals – Positive and Negative Factors
- Positive Factors: Seoul Dragon City hotel operations, exclusive logistics facility operations, treasury stock cancellation.
- Negative Factors: Declining sales, increasing debt ratio, risks associated with interest rate and exchange rate fluctuations.
4. What’s Next? – Investor Action Plan
A conservative approach is recommended for investors at this time. Closely monitor MYH’s further stake changes, the company’s financial restructuring plans, and business outlook for the second half of 2025 and 2026. Pay close attention to macroeconomic factors such as interest rate fluctuations, exchange rate changes, and the recovery of the tourism industry. In the medium to long term, the key indicators for investment decisions will be the enhancement of the hotel business’s competitiveness, the growth of the logistics business, and the recovery of financial soundness.