The Financial Supervisory Service (FSS) has halted Hanwha Aerospace's capital increase again. Hanwha Aerospace announced a capital increase worth 3.6 trillion won last month, but there had already been a request for correction from the FSS. Hanwha Aerospace adjusted its capital increase plan while reducing the amount, but it faced another stop due to a second correction request.
On the 17th, the FSS requested Hanwha Aerospace to submit a correction report through the electronic disclosure system.
Previously, on the 27th of last month, the FSS had made the first correction request to Hanwha Aerospace. The reason was the lack of persuasive power regarding the justification, shareholder communication process, and purpose of fund utilization stated in the capital increase securities filing.
Subsequently, Hanwha Aerospace drastically reduced the size of its capital increase from the previous 3.6 trillion won to 2.3 trillion won and supplemented the content to resubmit the securities filing. Additional explanations were included due to criticisms that it planned to use already possessed cash to acquire Hanwha Ocean and then replenish funds through the capital increase.
Euh Bok-hyun, head of the FSS, said on the 10th regarding Hanwha Aerospace's capital increase review, "Sufficient information necessary for investors and stakeholders' judgments must be clearly stated," adding, "The newly submitted securities filing will be reviewed quickly to ensure that there are no disruptions in the funding schedule while applying strict principles."
However, with the FSS making a second correction request, Hanwha Aerospace's funding is expected to be delayed again. The effective date for the initially corrected securities filing was the 23rd. Since a new effective date will be set after the securities filing correction, Hanwha Aerospace's capital increase will not be able to start until next month at the earliest.