[Market Focus] Poongsan Soars on News of Hanwha's Bid for Ammunition Division... Poongsan Holdings Hits Upper Limit

Poongsan and its largest shareholder, Poongsan Holdings, are experiencing a sharp surge in early trading.

As of 9:10 a.m. on April 6, Poongsan was trading at 116,650 won, up 19,850 won (20.51%) from the previous day. Poongsan Holdings hit the upper price limit, soaring 29.99% to 48,250 won.

It appears that the news of Hanwha Aerospace seeking to acquire Poongsan's ammunition division has driven the share prices higher. Poongsan Holdings is the largest shareholder of Poongsan, holding a 38% stake.

According to industry sources, Hanwha Aerospace is said to have participated in the closed bidding for Poongsan's ammunition division and submitted its final bid proposal.

Yonghyun Choi, a researcher at KB Securities, commented, "Given the high demand for ammunition in the global market and the absence of domestic competitors due to regulations, there will likely be many prospective buyers. For example, Rheinmetall produces both propellants and ammunition, creating synergy. Considering that Poongsan's ammunition is used in major domestic tanks and self-propelled artillery, domestic defense companies with sufficient capital are likely to review the acquisition positively."

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