Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Hanwha raises KAI stake to 9.04%, becomes No. 2 shareholder
Hanwha Group headquarters in Seoul / Courtesy of Hanwha Group
By Lee Min-hyung
Hanwha Group has increased its stake in Korea Aerospace Industries (KAI) to 9.04 percent, further strengthening its presence in the nation's aerospace and defense sector.
Hanwha Aerospace said Tuesday in a regulatory filing that it secured a 6.5 percent stake in KAI, achieving ahead of schedule its previously announced plan to invest 500 billion won ($331 million) in the company by the end of this year.
Hanwha Systems also expanded its holdings in KAI to 1.53 percent through an additional 125 billion won investment. Combined with the 1.01 percent stake held by Hanwha Aerospace USA, Hanwha Group now owns a total of 9.04 percent of KAI, making it the company's second-largest shareholder after the state-run Export-Import Bank of Korea, which holds a 26.41 percent stake.
Also on Tuesday, Hanwha Aerospace's board approved an additional 500 billion won investment to acquire more KAI shares by year-end. Based on KAI's closing price of 154,900 won, the purchase would raise Hanwha Aerospace's stake to about 9.81 percent, bringing Hanwha Group's combined ownership in KAI to more than 12 percent.
Hanwha previously changed the stated purpose of its KAI shareholding from a passive investment to management participation.
Regarding the change, the company said it would consider involvement in KAI's decision-making process only when necessary and in a manner consistent with the company's management objectives as well as the interests of shareholders and other stakeholders. Any such participation would be carried out through lawful procedures available to shareholders, Hanwha added.