Hanwha Aerospace announced on the 8th that it would reduce the scale of a capital increase previously announced in March from 3.6 trillion won to 2.3 trillion won.
Hanwha Aerospace is considering procuring the reduced 1.3 trillion won through a third-party capital increase involving three companies: Hanwha Energy, Hanwha Impact Partners, and Hanwha Energy Singapore, it noted on the same day.
If this plan is confirmed, Hanwha Energy, whose major shareholders are the three sons of Chairman Kim Seung-yeon, will participate in the capital increase without a discount. This means they will purchase shares at market price within April. In contrast, minority shareholders participating in Hanwha Aerospace's allocation of the capital increase can buy shares at a 15% discounted price.
Hanwha stated, "The major shareholder of Hanwha Energy will sacrifice, and minority shareholders of Hanwha Aerospace will benefit," adding that "taking action to purchase shares at market price is a positive factor for the rise in share prices." This is interpreted as a measure to dispel concerns that the 1.3 trillion won will be used as funds for the succession of management rights by the major shareholder of Hanwha Energy.
If this plan is implemented, the 1.3 trillion won that Hanwha Aerospace had paid to Hanwha Energy as a stock sale price for Hanwha Ocean in February will return to Hanwha Aerospace. At that time, when Hanwha Aerospace acquired Hanwha Energy's equity in Hanwha Ocean, concerns were raised that it might be used as funds for the succession of management rights by Chairman Kim's three sons.
Son Jae-il, CEO of Hanwha Aerospace, explained, "We acquired equity in Hanwha Ocean for business purposes and initiated a capital increase with shareholder allocation, but I am aware of the public sentiment linking it to management succession," adding, "We are looking for ways to focus on our core business to avoid unnecessary controversy."
Last month, Hanwha announced that Chairman Kim had decided to give 11.32% of Hanwha's equity to his three sons, including Vice Chairman Kim Dong-gwan, with Vice Chairman Kim and others stating they would diligently pay taxes according to the law while emphasizing "fair management" and "transparent succession." This is interpreted as a message underscoring that the capital increase itself is unrelated to succession.