Hanwha Vision "No Intention to Invest in Ourhome"... Denies Participation in Acquisition Rumors

Hanwha Vision has decided to withdraw from the Ourhome acquisition battle. It appears to be mindful of the market's perception that the company might merely serve as a 'storehouse' due to the lack of connection between its existing business and Ourhome's food service operations.

On the 3rd, Hanwha Vision announced on its official website, "Hanwha Vision has no intention whatsoever to participate in investment related to Ourhome."

Notice posted by Hanwha Vision on the 3rd. Hanwha Vision website

Previously, Hanwha Group planned for Hanwha Hotels & Resorts, Hanwha Vision, and private equity fund IMM Credit Solution (IMM CS) to share the acquisition cost and acquire 100% of Ourhome's shares for a total of 1.5 trillion KRW. Hanwha Vision was expected to contribute approximately 250 billion to 300 billion KRW to the acquisition.

This decision is interpreted as a judgment influenced by market sentiment amid the growing importance of enhancing shareholder value. The dominant view inside and outside the market was that there would be little synergy with Hanwha Vision's business. Hanwha Vision focuses on camera optics and IT solutions as its core businesses.

In fact, since news broke late last month that Hanwha Vision would enter the Ourhome acquisition race, its stock price has continued to decline. On this day, Hanwha Vision closed at 30,800 KRW, down 2,850 KRW (-4.50%) from the previous trading day, barely maintaining the 30,000 KRW level.

Shareholders have opposed the allocation of nearly 300 billion KRW to acquire a company unrelated to its business instead of investing in research and development.

Meanwhile, Hanwha is reportedly planning to continue the acquisition by increasing borrowings from financial institutions or securing acquisition financing. They are negotiating to acquire a total of 57.84% of shares held by Ourhome's eldest son, former Vice Chairman Koo Bon-sung (38.6%), and eldest daughter Koo Mi-hyun, Chairwoman (19.3%). They plan to persuade former Vice Chairman Koo Ji-eun (20.98%), who currently opposes the sale, and the third daughter Koo Mi-hyun (19.28%) to complete the acquisition of the entire stake.