Hanwha Group Consolidates Dispersed Hanwha Ocean Shares into Hanwha Aerospace

Aiming to Strengthen Control and Business Synergy

Hanwha Group is consolidating its Hanwha Ocean shares, which were dispersed across its affiliates, into Hanwha Aerospace. This move is interpreted as an effort to enhance control and business synergy by gathering the shares purchased separately by each affiliate during the acquisition of Daewoo Shipbuilding & Marine Engineering.

On the 10th, Hanwha Aerospace held a board meeting and resolved to purchase 7.3% of Hanwha Ocean shares held by Hanwha Impact Partners (5.0%) and Hanwha Energy (2.3%) at the closing price of 58,100 KRW on the same day. The total purchase amount is 1.3 trillion KRW, and the expected stock acquisition date is the 13th of next month.

Following this purchase, Hanwha Aerospace's stake in Hanwha Ocean will increase from the previous 34.7% to 42.0% on a consolidated basis.

Hanwha Aerospace stated, "With the additional acquisition of Hanwha Ocean shares, we expect to enhance business synergy as a global top-tier player in defense and shipbuilding & marine businesses, as well as increase corporate value through expanded global exports."

In May 2023, four Hanwha Group affiliates participated in a 2 trillion KRW paid-in capital increase of Daewoo Shipbuilding, securing a 49.3% stake in Daewoo Shipbuilding & Marine Engineering. Through this, the shares are being consolidated into Hanwha Aerospace. Hanwha Aerospace plans to expand its defense-centered business portfolio into the shipbuilding and marine sectors.

Meanwhile, Hanwha Impact Partners and Hanwha Energy, which sold their Hanwha Ocean shares, plan to use the related funds for new business investments and improving their financial structure.