Hanwha Ocean, formerly known as DSME, eyes $107 million in stock sale

Daewoo Shipbuilding & Marine Engineering, one of South Korea’s top three shipbuilders, plans to raise 141.3 billion won ($107.7 million) through a stock offering. The proceeds from this offering will primarily be used to pay off the company’s debts, according to regulatory filings.

In the stock offering, Daewoo Shipbuilding will issue approximately 5.14 million common shares at a price of 27,467 won per share. The company has designated specific investors who will have the opportunity to purchase the offered shares.

Simultaneously, the shipbuilder made a significant change by dropping the “Daewoo” name from its corporate identity after 45 years. The decision comes as Hanwha Group successfully completed the acquisition process, acquiring a 49.3 percent stake in Daewoo Shipbuilding through a 2 trillion-won ($1.49 billion) rights offering.

During a shareholders’ meeting held at its headquarters in Geoje, Daewoo Shipbuilding approved amendments to its articles of incorporation, including changing the company’s name to Hanwha Ocean Co. The meeting also confirmed the appointment of new executives, with Kwon Hyek-woong, vice chairman of Hanwha Group’s Support Division, being appointed as the first head of Hanwha Ocean.

Hanwha Group’s acquisition of Daewoo Shipbuilding is seen as a significant development that will pave the way for the shipbuilder’s revitalization. Hanwha aims to leverage Daewoo Shipbuilding’s expertise in special ships, such as destroyers, patrol ships, and submarines, to strengthen its position as a comprehensive defense company covering land, sea, and air. The acquisition will enable Hanwha to expand its existing businesses in space and ground defense, contributing to its growth as a prominent player in the global defense industry.