Hanwha Group to acquire remaining Hanwha General Chemical shares from Samsung

[Photo provided by Hanwha General Chemical Co.]

A $2 billion M&A deal between Korean conglomerates Hanwha Group and Samsung Group becomes complete in six years through the purchase of remaining Hanwha General Chemical Co. shares at near 1 trillion won ($880 million).

Hanwha Energy Corp and Hanwha Solutions Corp. will acquire combined 24.1 percent stake in Hanwha General Chemical Co. from two Samsung Group affiliates – 20.05 percent stake from Samsung C&T Corp. at 821.0 billion won and 4.05 percent stake from Samsung SDI Co. at 165.8 billion won, according to their disclosures made on Wednesday.

The two Hanwha units will pay around 1 trillion won in three installments. They plan to make the first payment this year with cash reserves and the rest next year with future profits.

Hanwha Energy will own 51.7 percent in Hanwha General Chemica and Hanwha Solutions 47.6 percent once the stake acquisition is completed.

On Thursday, Hanwha Solutions shares fell 1.93 percent to close at 45,700 won. Samsung C&T shares finished up 0.75 percent at 135,000 won and Samsung SDI up 0.88 percent at 690,000 won.

Hanwha Energy is unlisted.

Hanwha General Chemical¡¯s IPO plan is put on hold as a result.

When it signed a deal with Samsung Group six years ago, Hanwha Group vowed to fulfill the dues through IPO or direct stock purchase by the end of 2021.

The group may still pursue IPO of Hanwha General Chemical depending on the business performance and market conditions, said a company official.

Hanwha General Chemical has become a valuable asset for the group after shift to hydrogen and other eco-friendly chemicals market. The company earlier this year acquired to global gas turbine companies - U.S. Power Systems Mfg., LLC (PSM) and Ansaldo Thomassen B.V (ATH) of the Netherlands. PSM and ATM are among the leading hydrogen combustion technology companies in the world.

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