Hanwha Raises KAI Stake to 15.89%...Set to File for Business Combination Review

Hanwha Systems acquires 4.98% stake in KAI for 500 billion won
Initial plan was to buy shares by year-end, completed within a month

Hanwha Group has increased its stake in Korea Aerospace Industries (KAI), raising its total shareholding ratio to over 15%.

Korea Aerospace Industries (KAI) Headquarters. KAI

According to Hanwha Systems on August 10, the company acquired a total of 3,363,353 KAI shares through on-market purchases since last month, spending a total of 499.85077 billion won. As a result, Hanwha Systems' KAI holdings increased from 1,487,530 shares to 4,850,883 shares, lifting its stake to 4.98%.

Hanwha Systems held a board meeting on July 8 and resolved to purchase KAI shares on the stock market with an upper limit of 500 billion won, aiming to strengthen business cooperation. Although the company initially planned to complete the purchases by the end of this year, the transactions were finalized in about a month as of today. The actual acquisition amount, 499.85077 billion won, corresponds to 9.99% of Hanwha Systems' equity capital.

With this latest move, Hanwha Group's total stake in KAI has risen to 15.89%. Hanwha Aerospace holds 9.90%, Hanwha Systems 4.98%, and Hanwha Aerospace USA 1.01%.

Following this increase in ownership, Hanwha Group plans to file for a business combination review with the Fair Trade Commission, as its stake in KAI, a listed company, has surpassed 15%.

Hanwha Systems stated that the purpose of acquiring this KAI stake is to 'strengthen business cooperation'.

This content was produced with the assistance of AI translation services.