Chairman of Hanwha Group Transfers 50% Stake to Sons
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Synopsis
On March 31, Hanwha Group's Chairman Kim Seung-youn announced that he has transferred half of his stake in Hanwha Corp. to his three sons, completing the group's leadership succession. This strategic move aims to mitigate speculation and focuses on the company's core operations.
Key Takeaways
- Chairman Kim Seung-youn transfers 50% stake.
- Leadership succession within Hanwha Group completed.
- Combined stake of sons totals 42.67% in Hanwha Corp.
- Decision made to reduce speculation about succession.
- Strategic business moves unrelated to succession planning.
Seoul, March 31 (NationPress) Chairman Kim Seung-youn of Hanwha Group has transferred 50% of his stake in the group's holding entity, Hanwha Corp., to his three sons, as announced by the company on Monday. This move effectively marks the completion of the leadership transition within the group.
As per a regulatory disclosure, a total of 11.32% of ownership in Hanwha Corp. has been distributed among the three sons.
Vice Chairman Kim Dong-kwan has acquired 4.86%, while President Kim Dong-won and Executive Vice President Kim Dong-seon each received 3.23%.
Previously, Kim held a 22.65% stake in Hanwha Corp., which serves as the conglomerate's principal holding company. After the transfer, his remaining stake is now 11.33%.
Post-transfer, Hanwha Energy Corp. possesses a 22.16% stake in Hanwha Corp., with Chairman Kim's ownership at 11.33%. Vice Chairman Kim Dong-kwan holds 9.77%, while both younger sons possess 5.37% each.
Since the three sons already control 100% of Hanwha Energy, their cumulative stake in Hanwha Corp. now stands at 42.67%, thereby consolidating the management control within the next generation.
The group indicated that Chairman Kim chose to gift the shares to mitigate unwarranted speculation regarding the leadership transition and to enable the company to concentrate on its fundamental business activities.
This decision follows speculation surrounding Hanwha Aerospace Co.'s recent rights offering and its acquisition of a stake in Hanwha Ocean, which were linked to succession planning.
The group clarified that these strategic business decisions are independent of the succession process.
Recently, reports emerged suggesting that the German shipping company Hapag-Lloyd may engage Hanwha Ocean for its upcoming container ship orders, valued at over 1.7 trillion won (approximately $1.2 billion), according to international media. Hapag-Lloyd is contemplating placing an order for six liquefied natural gas (LNG) dual-fuel container carriers with Hanwha Ocean, as stated by the global shipping news outlet TradeWinds.
