Hanwha Aerospace ups stake in Hanwha Ocean in $900 mn block deal

Hanwha Aerospace Co. will acquire an additional 1.3 trillion won ($900 million) worth of shares in Hanwha Ocean Co. from its sister companies through a block deal in March.

The transaction is expected to tighten Hanwha Group Vice Chairman and heir apparent Kim Dong-Kwan’s control over the energy-to-defense conglomerate’s defense business.

Hanwha Aerospace on Monday decided at a board meeting to buy 22.38 million shares in Hanwha Ocean at 58,100 won per share from the other Hanwha Group units on March 13, according to its regulatory filing.

The purchase price is 8.2% lower than the shipbuilder's share price that closed at 63,300 won on Tuesday, up 8.95% compared to Monday's finish.

The block trade would increase Hanwha Aerospace’s stake in the affiliated shipbuilder to 30.4% from the current 23.14%. But it will not affect Hanwha Group’s overall stake in the shipbuilder, which will remain at 46.25%.

In 2023, Hanwha Group acquired Hanwha Ocean, then Daewoo Shipbuilding & Marine Engineering Co., in a 2-trillion-won deal.

As of the end of 2024, Hanwha Aerospace holds a 23.14% stake in the shipbuilding unit. Other shareholders include Hanwha Systems Co., Hanwha Impact Partners Inc. and Hanwha Energy Corp. whose stakes in Hanwha Ocean stand at 11.57%, 9.26% and 2.3%, respectively.

In 2024, Hanwha Ocean swung to a profit for the first time in four years, driven by increased sales of high-value-added LNG carriers.

The block deal is in line with the group's generational leadership transition, under which Chairman Kim Seung-youn's second son Kim Dong-won is taking charge of financial units. The third son Kim Dong-seon is overseeing the leisure and retail businesses.

Write to Seok-Cheol Choi at dolsoi@hankyung.com
 


Yeonhee Kim edited this article.