Exchange Receives Preliminary Review Application for Hanwha Spin-off Relisting

Hanwha Tech and Life Divisions to Form New Entity

The Korea Exchange announced on January 14 that it had received a preliminary review application for the relisting of Hanwha Corporation's shares on the KOSPI market following a spin-off.

On the same day, Hanwha's board of directors resolved to proceed with a spin-off, dividing the company into a surviving entity, which will include the defense, shipbuilding & marine, energy, and financial divisions, and a newly established entity, which will include the tech and life divisions.

Korea Exchange, Yeouido, Seoul. Photo by Kang Jinhyung

Once the spin-off is completed, tech affiliates such as Hanwha Vision, Hanwha Momentum, Hanwha Semitec, and Hanwha Robotics, as well as life affiliates such as Hanwha Galleria, Hanwha Hotels & Resorts, and Ourhome, will be incorporated into the newly established entity, Hanwha Machinery & Services Holdings. The surviving entity will include defense, shipbuilding & marine, energy, and financial affiliates such as Hanwha Aerospace, Hanwha Ocean, Hanwha Solutions, and Hanwha Life Insurance.

The spin-off ratio, based on the book value of net assets, has been set at 76.3% for the surviving entity and 23.7% for the new entity. Existing shareholders will be allocated shares in both the surviving and new entities according to this ratio.