Hanwha to Spin Off Tech and Life Divisions into New Holding Company
Hanwha Corporation plans to spin off its tech and lifestyle divisions into a new entity, Hanwha Machinery & Service Holdings, while retaining its defense and heavy industry operations. The spin-off, approved by the board, will allocate 76.3% of shares to the existing company and 23.7% to the new one, with completion expected by July following a shareholder meeting in June. This restructuring aims to enhance corporate value and improve decision-making efficiency, alongside the cancellation of 4.45 million treasury shares and an increase in dividends to 1,000 KRW per share.
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Hanwha Corporation plans to undergo a spin-off, creating a new entity called Hanwha Machinery & Service Holdings for its tech and lifestyle sectors, while retaining defense and heavy industry operations. The spin-off ratio is set at 76.3% for the surviving entity and 23.7% for the new one, aimed at addressing the conglomerate discount affecting valuation.
The board approved the spin-off on the 14th, with completion expected by July after a June shareholder meeting. Additionally, Hanwha will cancel 4.45 million treasury shares and increase dividends to 1,000 KRW per share. This restructuring is intended to enhance corporate value by allowing each entity to pursue tailored strategies and improve decision-making efficiency.
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