Hanwha's rights offering draws backlash
Hanwha Group is facing mounting criticism in the capital market following its unexpected decision on Thursday to issue 3.6 trillion won ($2.5 billion) worth of new Hanwha Aerospace shares at 605,000 won per share, nearly 15 percent lower than that day's stock price. The nation's seventh-largest conglomerate attributed the largest-ever rights offering in the domestic stock market to its defense unit's plan to raise funds for global expansion, including the acquisition of Austal, an Australian shipbuilder with a shipyard in the United States. However, investors and securities analysts have raised doubts about the necessity of the paid-in capital increase, which has significantly depreciated the shares of Hanwha Group affiliates, putting a damper on their recent bullish trend. As the plan backfired, the company said Sunday that its top executives, including Hanwha Group heir Kim Dong-kwan, decided to buy back treasury shares worth 4.8 billion to soothe investor concerns. On Friday, Hanwha Aerospace's stock price closed at 628,000 won, down 13.02 percent from the previous session. The stock
Mar 21, 2025By Park Jae-hyuk