Hanwha Systems plans USD1 billion share sale to support acquisitions

C4ISR specialist Hanwha Systems has announced plans to raise USD1 billion through a new share sale. The company, one of four defence firms under the South Korean Hanwha group, said the funding would be used to support expansion through new acquisitions.

Under the share-sale plan, which was announced on the South Korean stock exchange on 29 March, Hanwha Systems aims to generate funds of KRW1.2 trillion (USD1.06 billion) through the sale of 79 million shares at KRW15,250 each.

South Korean firm Hanwha Systems – which builds C4ISR solutions such as this C2A system for the Republic of Korea Armed Forces – has outlined plans to raise USD1 billion through a new share sale. (DAPA)

The company said it would receive bids in early June, adding that the majority of the funding raised through the sale would be spent on additional corporate acquisitions, with the remainder expected to support investments in production equipment and facilities.

Hanwha Systems’ share sale comes after the company acquired two overseas firms in key technology sectors.

In June 2020 Hanwha Systems acquired UK firm Phasor Solutions, a developer of antennas for satellite communications systems, for an unspecified amount, while in December 2019 it acquired a 30% stake in US company OverAir for USD25 million, which specialises in unmanned systems.

In November 2019 Hanwha Systems also raised USD1.1 billion through the issuance of shares on the Korean stock exchange. This market listing was also aimed at supporting efforts to expand in international markets.

Seoul-based Hanwha Systems, which was formerly named Samsung Thales, employs 3,000 people. Its capabilities include avionics; surveillance and reconnaissance; command, control, and communications; marine systems, including anti-submarine warfare; and electronic warfare.