Hanwha Energy, fully owned by the three sons of Hanwha Group Chairman Kim Seung-youn, has decided to purchase 180 billion won worth of shares in the group’s holding company, Hanwha Corp., through a public tender offer. This move is expected to accelerate the succession process centered around Hanwha Group Vice Chairman Kim Dong-kwan.
According to South Korea’s electronic disclosure system, DART, Hanwha Energy will launch a public tender offer for up to 6 million common shares of Hanwha Corp., representing an 8% stake, from July 5 to July 24. If all the targeted shares are acquired, Hanwha Energy’s stake will increase from 9.7% to 17.7%, totaling 13,272,546 common shares. NH Investment & Securities is the lead manager for the tender offer.
The tender offer price is set at 30,000 won per share, 7.71% higher than the previous day’s closing price. This price is not significantly higher than typical tender offer prices. The total amount for the tender offer is 180 billion won.
During the tender offer period, Hanwha Energy plans to purchase all the shares tendered, even if the number of tendered shares falls short of the targeted amount. If the number of tendered shares exceeds the target, the shares will be purchased on a pro-rata basis within the planned quantity.
If the tender offer is successful, Hanwha Energy will become the second-largest shareholder of Hanwha Corp., following Chairman Kim Seung-youn. Hanwha Energy was formed in 2021 by merging with its parent company H-Solution, which was created in 2017 through a spinoff from Hanwha S&C. The ownership structure has remained entirely with the three sons.
