Hanwha Corporation will participate in a capital increase of 3.6 trillion won by its defense industry affiliate, Hanwha Aerospace. Hanwha Corporation, which holds a 33.95% equity stake in Hanwha Aerospace, plans to raise the necessary funds through external borrowing.
On the morning of the 26th, Hanwha Corporation held a board meeting at the Hanwha Building in Jung-gu, Seoul, and voted in favor of participating in the shareholder allocation capital increase for Hanwha Aerospace. Hanwha Corporation will acquire 1,620,289 shares at 605,000 won per share according to its equity ratio. The issuing price is subject to change and is scheduled to be finalized on May 29.
The current total asset size is approximately 980.3 billion won, and Hanwha Corporation intends to secure funding through retained cash and financial procurement. The stock acquisition date is set for June 12.
Kim Seung-mo, CEO of Hanwha Corporation, noted, "We recognize the necessity for aggressive investment in Hanwha Aerospace, and we decided to participate to enhance the shareholder value of Hanwha Corporation through the growth of its subsidiary and to fulfill our responsibilities as a major shareholder." This signifies that Hanwha Corporation aims to fully support Hanwha Aerospace by acquiring 100% of the allocated shares.
Previously, Son Jae-il, CEO of Hanwha Aerospace, and Ahn Byeong-cheol, president of the institutional sector, along with other top executives, also decided to purchase company shares amounting to 4.8 billion won. Other executives have also set a policy to voluntarily participate in share purchases to enhance the future value of all shareholders, including minority shareholders.
At the Hanwha Aerospace shareholders' meeting on the 25th, CEO Son stated, "Rapid local investments are crucial to surpass the 'European defense industry block' and counter advanced defense companies' competitive pressures," adding, "To manage the liability for overseas bidding and carry out large-scale investments in a short period, a capital increase is the optimal solution."