Hanwha Aero and H Solutions Participate in Hanwha Systems' Paid-in Capital Increase

[Asia Economy Reporter Suyeon Woo] Hanwha Systems' rights offering will see participation from its largest shareholder Hanwha Aerospace and second-largest shareholder H Solutions. This participation aims to jointly secure a leading position in new business markets such as satellite communications and air mobility.

On the 30th, Hanwha Aerospace announced that it held a board meeting and decided to participate in Hanwha Systems' rights offering. Hanwha Aerospace will invest approximately 570 billion KRW, corresponding to its 48.99% stake (common stock basis) in Hanwha Systems. The scheduled stock acquisition date is June 11.

At the same time, H Solutions, the second-largest shareholder of Hanwha Systems, also decided to invest in new businesses through participation in the rights offering. H Solutions will invest 157 billion KRW, which corresponds to 120% of the allocation based on its 13.41% stake.

The previous day, Hanwha Systems announced a rights offering worth 1.2 trillion KRW to maximize synergies in new businesses in satellite communications and air mobility. Over the next three years starting this year, Hanwha Systems plans to invest 500 billion KRW in low Earth orbit satellite communications and 450 billion KRW in the air mobility business. Additionally, it will invest 250 billion KRW in a blockchain-based digital platform business.

Through these investments, the company aims to launch its own communication satellite by 2023 to begin a pilot service for low Earth orbit satellite communications and plans to launch a full service by 2025. Morgan Stanley forecasts the global low Earth orbit satellite communications market to exceed 320 trillion KRW by 2040.

Furthermore, on the same day, Hanwha Systems announced plans to promote new businesses in the air mobility market, which is expected to grow even more than satellite communications. Since 2019, Hanwha Systems has been developing the air mobility aircraft "Butterfly" in collaboration with the U.S.-based Overair.

In the first half of this year, the company plans to test the aircraft's core "electric propulsion system" and aims to complete aircraft development by 2024, with pilot services starting in 2025. Hanwha Systems estimates that the air mobility business will generate sales of approximately 11.4 trillion KRW by 2030.

A Hanwha Aerospace official participating in this rights offering said, "Participation in this rights offering is significant for securing a position in the 'New Space era' market," adding, "Investment in promising future businesses will strengthen the business portfolio and is expected to increase the value of Hanwha Systems' equity holdings."

This content was produced with the assistance of AI translation services.