Seoul: South Korea’s financial watchdog announced that Hanwha Aerospace Co. must resubmit its revised share sale plan.
According to Yonhap News Agency, this directive follows Hanwha Aerospace’s attempt earlier this month to amend its stock sale scheme, intending to generate 2.3 trillion won (approximately US$1.62 billion). This move was initially made at the request of the Financial Supervisory Service (FSS).
Initially, Hanwha Aerospace had unveiled a 3.6 trillion-won share sale plan in late March, marking it as the largest share sale proposal for a local company. This announcement had significant implications on the local financial market and drew criticism regarding the firm’s strategy for financing future investments.
In its revised proposal, Hanwha Aerospace planned to issue new shares to three Hanwha Group affiliates: Hanwha Energy Corp., Hanwha Impact Partners Inc., and Hanwha Energy Corporation Singapore Pte.
The FSS has requested another revision as the previous plan was deemed insufficient, particularly concerning detailed communication with shareholders and the specific use of the generated funds.