Hanwha Energy to buy larger stake in holding firm of Hanwha Group

Hanwha Energy Corp., fully owned by the three sons of Hanwha Group Chairman Kim Seung-youn, said Friday it will pay some 180 billion won (US$131 million) to buy an 8 percent stake in the group's holding company, Hanwha Corp. Hanwha Energy will make a tender offer of 30,000 won per share to purchase 6 million outstanding common shares in Hanwha Corp., the company said in a statement. If the tender is successful, Hanwha Energy's shareholding in Hanwha Corp. would be raised to 17.7 percent and become the holding firm's second-largest shareholder after the chairman. Observers said the tender offer is part of Hanwha Group's plan to transfer leadership to Kim's eldest son, Dong-kwan, who currently serves as vice chairman. The tender offer will run until July 24. Following the announcement, shares of Hanwha Corp. rose 4.31 percent to trade at 29,050 won as of 2:30 p.m., outperforming the broader KOSPI's 1.01 percent gain. Source: Yonhap News Agency