SEOUL, MARCH 20 (Yonhap/APP): South Korean defense giant Hanwha Aerospace Co. said Thursday it will raise 3.6 trillion won (US$2.5 billion) through a record stock sale as part of broader global investment plans in future growth sectors.
The company’s board of directors approved the plan to issue some 5.95 million common shares at a price of 605,000 won per share. It marks the largest-ever stock sale by a South Korean company.
Through the stock sale, Hanwha Aerospace said it plans to invest in the defense, maritime and aerospace sectors as it expects more opportunities amid a rearmament push in Europe and U.S. efforts to bolster its shipbuilding industry.
The company said it plans to acquire strategic production bases in Europe, the Middle East, Australia and the United States, aiming for sales of 70 trillion won and an operating profit of 10 trillion won in 2035.
From the latest stock offering, the company plans to use 1.6 trillion won for investment in overseas production facilities and arms industry cooperation.
The manufacturer of the K9 self-propelled howitzer said it also seeks to inject 900 billion won from the stock sale to invest in a smart factory and other production facilities, and 800 billion won to acquire more overseas shipbuilding facilities.
Earlier this week, the company acquired a stake in Australian shipbuilder Austal, while Hanwha Group also acquired U.S. shipbuilder Philly Shipyard last year.
The company said it also plans to invest 300 billion won in facilities to develop engines for unmanned aerial vehicles.
“Through the strategic large-scale investment … we will take another step forward to becoming a global top-tier company in defense, shipbuilding and aerospace,” Hanwha Aerospace CEO Son Jae-il said.