On the 10th, Poongsan Holdings plunged 18% early in the session on news that Poongsan is scrapping the sale of its defense division.
As of 9:14 a.m. that day on the Korea Exchange, Poongsan Holdings was trading at 44,300 won, down 9,900 won (18.27%) from the previous session. At the same time, Poongsan was trading at 98,900 won, down 3.79%.
Poongsan said after the market closed the previous day that it will not pursue the 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 nothing is currently being pursued regarding the sale of the ammunition business."
In particular, news also emerged that Hanwha Aerospace has halted its review of an acquisition. Hanwha Aerospace disclosed, "To strengthen defense competitiveness and enhance corporate value, we are continuously reviewing various business opportunities, including Poongsan's ammunition business, but the review of acquiring Poongsan's defense division has been halted."
On the news that Poongsan withdrew the sale of its ammunition division that day, Poongsan Holdings at one point traded at 45,200 won, down 16%, in the NextTrade (NXT) aftermarket.
Previously, Poongsan was said to have been considering a method of selling the defense division after a spin-off. The sale price was said to be around 1.5 trillion won. There had been speculation that Hanwha Aerospace would participate in the sale.
On such expectations, the share price of holding company Poongsan Holdings has surged recently. Poongsan Holdings owns about 38% equity in Poongsan. Poongsan Holdings hit the upper limit (29.99%) on the 6th and rose another 15.98% on the 7th.