Hanwha System set a new all-time high. This seems to be due to jointly pursuing the acquisition of the Australian shipbuilder Austal with Hanwha Aerospace.
Hanwha System shares were traded at 41,700 won on the KOSPI market at 9:31 a.m. on the 18th. The stock price rose 7.34% (2,850 won) from the previous day. The stock price jumped to 42,500 won early in the session, reaching a new all-time high in just one day. At the same time, Hanwha Aerospace and Hanwha Ocean shares are also on the rise.
The news of the Austal acquisition seems to have boosted investor sentiment. The local subsidiary (HAA No.1), in which Hanwha System and Hanwha Aerospace hold 60% and 40% equity respectively, purchased 9.9% of Austal's equity through an over-the-counter transaction the previous day.
They also entered into a total return swap (TRS) agreement for an additional 9.9% equity in Austal through an Australian securities company. A TRS is a financial contract where the underlying asset (stock) is not directly held, and only revenue or loss linked to the asset is received.
HAA No.1 has applied for approval related to a 19.9% investment in Austal from the Foreign Investment Review Board (FIRB) in Australia. If accepted, it will become the largest shareholder of Austal.
Hanwha Group pointed out that Austal is one of the four core suppliers to the U.S. Navy. Austal holds a market share of 40% to 60% in the U.S. small surface ship and logistics support vessel markets, ranking first.
Michael Coulter, president of Hanwha Aerospace's overseas business division, noted, "Hanwha expects to play a significant role in the global defense and shipbuilding industries through collaboration with Austal."