Hanwha Aerospace Reduces Rights Offering Size Amidst Controversy 💰

Hanwha Aerospace has decided to reduce its previously announced rights offering from ₩3.6 trillion to ₩2.3 trillion (approximately $2.7 billion to $1.7 billion USD). This move aims to alleviate concerns that the funds were being used to facilitate the controlling shareholder’s succession and to address shareholder dissatisfaction with the rights offering.

Key Points:

• Reduced Size: The rights offering is reduced by ₩1.3 trillion.
• Third-Party Placement: The reduced amount will be raised through a third-party placement involving Hanwha Energy and other affiliates.
• Share Price Adjustment: The new share issuance price has been lowered by 15% to ₩539,000.
• Hanwha Energy’s Role: Hanwha Energy, whose major shareholders are the three sons of Hanwha Group Chairman Kim Seung-yeon, will participate in the third-party placement without a discount.

Why the Change?

The decision comes amid scrutiny over whether funds from the sale of Hanwha Ocean shares to Hanwha Energy were being used for succession purposes. By having Hanwha Energy participate in the third-party placement, the company aims to return the funds to Hanwha Aerospace and dispel these concerns.

According to Hanwha, this is a measure where Hanwha Energy’s major shareholders are sacrificing, and Hanwha Aerospace’s minority shareholders benefit.

Hanwha Aerospace maintains that the funds are necessary for investments to address the changing global security landscape and intensifying competition in the defense industry. 🚀

In summary, Hanwha Aerospace is adjusting its fundraising strategy to balance its financial needs with concerns about corporate governance and shareholder value. 🤔

₩ (Korean Won): is the currency of South Korea. As of October 26, 2024, ₩1,300 trillion is approximately $965 million USD.