Kiwoom Securities to acquire additional Hanwha Ocean shares worth W509.2b

Kiwoom Securities plans to acquire approximately 8.16 million additional shares of Hanwha Ocean for about 509.2 billion won ($378 million) through a price return swap agreement, as Hanwha Systems moves to sell its entire stake in the shipbuilder.

Kiwoom Securities disclosed the share acquisition plan Friday. The per-share acquisition price is 62,400 won, based on the closing price on the Korea Exchange's regular market on Thursday — the last trading day before the contract was signed. The transfer is scheduled for Monday, with the acquisition to follow on Wednesday. The acquisition amount represents 7.58 percent of Kiwoom Securities' consolidated equity capital as of the end of last year.

With this acquisition, Kiwoom Securities' total holdings in Hanwha Ocean will rise to 8,359,670 shares, including its existing stake, bringing its ownership to 2.73 percent.

Kiwoom Securities is using a price return swap, or PRS, contract for the transaction. The contract runs for one year, with gains and losses from share price movements settled with the counterparty under the contract terms. The company said in its disclosure that the purpose of the acquisition was "a stake acquisition based on an internal investment decision."

Hanwha Systems separately disclosed Friday that it would sell all 22,169,660 of its Hanwha Ocean shares for approximately 1.38 trillion won, citing the goal of securing liquidity and strategic investment resources. In addition to Kiwoom Securities, the counterparties include KB Securities, Korea Investment & Securities and Shinhan Securities.

Hanwha Systems said it plans to invest the proceeds from the asset monetization in future growth businesses such as satellites and defense AI to strengthen its long-term competitiveness.

Earlier, in March, Hanwha Systems had also monetized approximately 4.33 percent of its Hanwha Ocean stake through a PRS arrangement, transferring the shares to an SPC established by Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities and Daishin Securities.