Hanwha Aerospace has changed its funding structure. Initially, it was planned to raise 3.6 trillion won through a shareholder allocation capital increase, but the allocation for minority shareholders was reduced to 2.3 trillion won, and the remaining 1.3 trillion won will be allocated to Hanwha Energy, Hanwha Impact Partners, and Hanwha Energy Singapore, which are the three sibling companies of Hanwha Group.
In February, Hanwha Aerospace spent 1.3 trillion won to purchase 7.3% equity of Hanwha Ocean held by Hanwha Energy and Hanwha Impact, and a week later decided on a 3.6 trillion won shareholder allocation capital increase, which drew criticism. It appears this decision was made in response to objections that cash was being channeled to the three sibling companies for succession purposes while soliciting investments from shareholders.
Through this capital increase, the total shares acquired by Hanwha Energy and others in Hanwha Aerospace are 1,715,040 shares. The allocated number of shares is highest for Hanwha Impact Partners at 1,171,584 shares, followed by Hanwha Energy Singapore with 380,419 shares and Hanwha Energy with 163,037 shares. They agreed to participate at 758,000 won per share. Once the payment is completed on the 28th, 1.3 trillion won will flow back from the three sibling companies to Hanwha Aerospace.
The three siblings exert influence on the group in a structure of 'Hanwha Energy → Hanwha → Hanwha affiliates.' Hanwha Energy is considered a sibling company since Kim Dong-kwan, vice chairman of Hanwha Group, holds 50% equity, Kim Dong-won, president of Hanwha Life, holds 25%, and Kim Dong-seon, vice president of Hanwha Galleria, holds 25%. Hanwha Energy also holds 52% equity in Hanwha Impact.
A Hanwha official noted, 'This participation in the third-party allocation capital increase is a way to restore the 1.3 trillion won owned by Hanwha Energy and others to Hanwha Aerospace,' adding that it is 'a measure to uphold commitments to the market and enhance shareholder value.'
The scale of Hanwha Aerospace's shareholder allocation capital increase has been reduced from the initial 3.6 trillion won to 2.3 trillion won. The company explained, 'Minority shareholders may be able to purchase shares at 15% lower than the issuance price set for the future capital increase.'