Hanwha's investment arm sells 4.27% stake in Hanwha Ocean for MASGA project

This photo shows the Hanwha Philly Shipyard in Penn., U.S., July 20. Courtesy of Hanwha Ocean

Hanwha Impact Partners, an investment affiliate of Hanwha Group, said Friday it has sold its remaining 4.27 percent stake in shipbuilder Hanwha Ocean worth about 1.4 trillion won ($1 billion).

The move involved the sale of 13.08 million common shares at 107,100 won per share, according to a company regulatory filing. The buyers were mostly foreign institutional investors, with no Hanwha affiliates participating in the purchase.

Hanwha Group said funds will be used for projects including the Make American Shipbuilding Great Again (MASGA) initiative, a Korea-U.S. shipbuilding cooperative project, as well as new investments and debt repayment.

The share sale came after Hanwha pledged an additional $5 billion investment in Hanwha Philly Shipyard in Philadelphia during a Korea-U.S. summit held in Washington last month.

"This move is part of efforts to support Hanwha Ocean's leap toward becoming a world-class shipbuilder," a group official said.