On the news that Poongsan is scrapping the sale of its defense business unit, Poongsan Holdings is plunging 16% in NextTrade (NXT) after-market trading (3:40 p.m.–8 p.m.) on the 9th.
As of 5:54 p.m. that day, Poongsan Holdings was trading on NXT at 45,200 won, down 900 won (16.45%) from the previous session. At the same time, Poongsan was trading at 98,900 won, down 4.63%.
Poongsan said after the market closed that day that it will not pursue a sale of its ammunition business. On the 9th, Poongsan disclosed, "We are reviewing various options, including restructuring to enhance corporate value and shareholder value, but we inform you that there is nothing currently being pursued regarding the sale of the ammunition business."
In particular, news also emerged that Hanwha Aerospace halted its acquisition review. Hanwha Aerospace disclosed, "To strengthen defense competitiveness and enhance corporate value, we continue to review various business opportunities, including Poongsan's ammunition business unit, but the review of acquiring Poongsan's defense unit has been halted."
Previously, Poongsan was known to be reviewing a method of selling the defense unit after a spin-off. The sale price was said to be about 1.5 trillion won. There was speculation that Hanwha Aerospace would participate in the sale.
On such expectations, shares of holding company Poongsan Holdings have surged recently. Poongsan Holdings hit the daily upper limit (29.99%) on the 6th and rose another 15.98% on the 7th.