Hanwha Aerospace: To Purchase 500 Billion Won Worth of Additional KAI Shares: Step 2 of Privatization?

• Hanwha Aerospace (012450 KS) announced that it acquired additional 100,000 shares (0.1%) of Korea Aerospace Industries (047810 KS), raising Hanwha Group’s stake in KAI to 5.09% (from 4.99% previously).

• Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of outstanding shares).

• This is likely to have a greater beneficial impact on KAI because there will be more buying of its KAI by Hanwha Aerospace, boosting KAI’s share price.

Source: Korea Aerospace Industries