The Korea Exchange (KRX) has approved the preliminary review for the relisting of Hanwha Machinery & Service Holdings (tentative name), a new entity to be created through the spinoff of Hanwha Corp. (000880.KS).
The KRX Securities Market Division announced Tuesday that Hanwha Machinery & Service Holdings met the listing requirements for the main KOSPI bourse following its preliminary review. Accordingly, the new company plans to be established on August 1 and list on the KOSPI on August 25.
Hanwha Machinery & Service Holdings will be spun off from Hanwha Corp. to manage the group's tech and life-related subsidiaries and pursue new investments. Specifically, the new entity will oversee tech affiliates including Hanwha Vision, Hanwha Momentum, Hanwha Semitech and Hanwha Robotics, as well as life-related affiliates such as Hanwha Galleria, Hanwha Hotels & Resorts and Ourhome. The group aims to complete the spinoff process in July after holding an extraordinary shareholder meeting in June. Defense, shipbuilding and marine, energy and financial affiliates — including Hanwha Aerospace (012450.KS), Hanwha Ocean (042660.KS), Hanwha Solutions (009830.KS) and Hanwha Life Insurance (088350.KS) — will remain under the surviving entity, Hanwha Corp.
Hanwha Corp. resolved the spinoff of its life and tech divisions at a board meeting in January. At a subsequent briefing, the company cited the resolution of the "conglomerate discount" through business portfolio optimization as the key purpose of the spinoff. The plan is to clarify the business identities of the surviving and newly established entities and drive a market revaluation by optimizing strategy and investment for each business segment.
Kim Dong-sun, the third son of the Hanwha Group family and vice president, stepped down last month from his role as head of the overseas business division of Hanwha Corp.'s construction unit to focus on the launch of Hanwha Machinery & Service Holdings, according to sources.
