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Hanwha Group affiliates to acquire 1.3 trillion won of shares in Hanwha Aerospace

Published: 18 Apr. 2025, 19:40 Updated: 18 Apr. 2025, 19:43

KIM JU-YEON
[email protected]

Hanwha Energy, Hanwha Impact and Hanwha Energy Singapore will purchase 1.3 trillion ($917 million) won worth of Hanwha Aerospace’s shares through a third-party allotment, Hanwha Group said April 18. [HANWHA]

Three Hanwha Group affiliates, including Hanwha Energy, will acquire 1.3 trillion ($917 million) won worth of shares in Hanwha Aerospace through a third-party allotment, the group announced Friday.

The move is aimed at restoring investor confidence and easing regulatory concerns as it seeks to address controversy surrounding Hanwha Aerospace's initially planned 3.6 trillion won rights offering, which sparked backlash from investors and scrutiny from regulators. Critics raised concerns that the capital raise, following the firm's acquisition of a stake in Hanwha Ocean, was linked to family succession plans.

Hanwha Energy, Hanwha Impact and Hanwha Energy Singapore will purchase a total of 1,715,040 shares at 758,000 won — an undiscounted price based on the prescribed valuation formula for third-party issuances — the group said in a statement.

Hanwha Aerospace’s board of directors approved the transaction on Friday, while three affiliates also held their respective board meetings the same day to finalize their investment.

The three firms will transfer the funds by April 28, with the new shares listing on May 15. These shares will be subject to a one-year lock-up period.

Retail investors, however, will still have access to a 15 percent discount through a separate rights offering, with the final issue price yet to be determined.

The third-party allotment capital increase is to “resolve the controversy over whether the capital increase is to secure succession funds for [Hanwha] Chairman Kim Seung-youn’s three sons” and to “enhance shareholder value,” Hanwha said.

“The decision is aimed at strengthening trust with both domestic and international investors,” the group said in its statement.

In March, Hanwha Aerospace announced plans to raise 3.6 trillion won through a rights offering to support investments in overseas manufacturing facilities and research across its defense, shipbuilding and aerospace sectors. Its necessity was questioned by investors, sending affiliate share prices tumbling on the day of the announcement.

The Financial Supervisory Service (FSS) ordered a revision of the proposal, citing insufficient justification for the offering and a lack of transparency in how the funds would be used.

On April 8, Hanwha Aerospace lowered the size of the planned rights offering to 2.3 trillion won.

Yet, the FSS again requested revisions this week, warning the company’s filing might “mislead investors or impair informed decision-making.”

BY KIM JU-YEON [[email protected]]