Latest news with #HanwhaSystems
Korea Herald
5 days ago
- Business
- Korea Herald
Korean defense stocks jump on Israel-Iran conflict
Shares of South Korean arms makers rose sharply after Israel's attack on Iran, buoyed by the outlook that their exports could increase, even propelling the benchmark stock index Kospi to reach its over three-year high. Hanwha Systems, a major defense affiliate of Hanwha Group, closed daytime trading at 64,200 won ($47), up 18 percent from the previous session. Earlier in the day, the stock surged as high as 65,000 won, hitting the highest level since its listing on the Kospi in November 2019. Other major defense stocks also showed strong performances, with LIG Nex1 rising 5.32 percent, Hyundai Rotem gaining 6.32 percent and Hanwha Aerospace climbing 2.65 percent. Shares of each of the companies posted a fresh high. Amid escalating geopolitical tensions in the Middle East, expectations are rising for increased exports by Korean defense companies, partly due to their rivalry with Israeli firms in the arms sector. Israel may impose restrictions on defense exports to maintain its military capabilities, potentially allowing Korean firms to emerge as alternative suppliers. "In the past, Israel suspended a shipment of Merkava tanks to Morocco during a conflict with Hamas militants. With Israel likely to prioritize securing its domestic stock of air defense systems and strategic assets, a similar scenario could unfold. This could present short-term export opportunities for Korean defense companies," said Jung Dong-ik, an analyst at KB Securities. The buoyant defense shares even lifted the Kospi, outweighing concerns that Middle East tensions could pressure the Korean stock market with geopolitical risks. After opening at 2,903.50, the Kospi dropped as low as 2,886.13 in the early hours, but soon turned to a gain and recovered by closing at 2,946.66, up 52.04 points, or 1.8 percent from the previous session. It was the first time the Kospi surpassed the 2,940-point threshold as of daytime closing since January 2022. Retail investors and institutions were the net buyers, scooping up shares worth 45.5 billion won and 252.4 billion won, respectively, while foreign investors dumped 322.4 billion won on the market. The government held a joint emergency meeting, agreeing to maintain a 24-hour monitoring system on the financial markets. "If market volatility becomes excessive and diverges from the fundamentals of the Korean economy, the government will take swift and bold action under its contingency plans,' a statement released by the Finance Ministry said.
Korea Herald
5 days ago
- Business
- Korea Herald
Defense stocks soar on Israel-Iran tension
Shares of South Korean arms makers rose sharply after Israel's attack on Iran, buoyed by the outlook that their exports could increase. Hanwha Systems, a major defense affiliate of Hanwha Group, traded at 63,800 won ($47) as of 2 p.m., up 17.46 percent from the previous session. Earlier in the day, the stock surged as high as 65,000 won, hitting the highest level since its listing on the Kospi in November 2019. Other major defense stocks also showed strong performances, with LIG Nex1 rising 4.75 percent, Hyundai Rotem gaining 5.3 percent, and Hanwha Aerospace climbing 2.33 percent as of 2 p.m. Shares of each of the companies posted a fresh high during intraday trading. Amid escalating geopolitical tensions in the Middle East, expectations are rising for increased exports by Korean defense companies partly due to their rivalry with Israeli firms in the arms sector. Israel may impose restrictions on defense exports to maintain its military capabilities, potentially allowing Korean firms to emerge as alternative suppliers. "In the past, Israel suspended a shipment of Merkava tanks to Morocco during a conflict with Hamas militants. With Israel likely to prioritize securing its domestic stock of air defense systems and strategic assets, a similar scenario could unfold. This could present short-term export opportunities for Korean defense companies," said Jung Dong-ik, an analyst at KB Securities. Despite concerns that Middle East tensions could pressure on the Korean stock market due to geopolitical risks to the country's export-dependent economy, the benchmark Kospi had remained largely flat on Monday as of press time. After opening at 2,903.50, it dropped as low as 2,886.13 in the early hours, but recovered to an intraday high of 2,926.89, up 1.11 percent on-session as of 2 p.m. Retail investors were the only net buyers, scooping up shares worth 224.6 billion won, while foreign investors and institutions dumped 224 billion won and 7.3 billion won, respectively. In the morning, the government held a joint emergency meeting, agreeing to maintain a 24-hour monitoring system on the financial markets. "If market volatility becomes excessive and diverges from the fundamentals of the Korean economy, the government will take swift and bold action under its contingency plans,' a statement released by the Finance Ministry said.
CNA
05-06-2025
- Business
- CNA
South Korea's Hanwha offloads Eutelsat stake as Starlink rival seeks new investors
South Korea's Hanwha Systems said on Thursday it was selling its entire 5.4 per cent stake in Eutelsat for about 78 million euros ($85 million), as the Franco-British satellite operator seeks new investors. Eutelsat has garnered unprecedented attention this year from governments looking for home-grown alternatives to SpaceX's Starlink for satellite internet connectivity. The company is working on a new financing plan to fund the second generation of its low Earth orbit (LEO) OneWeb satellites and to fulfil commitments to the European Union's IRIS² project. It has piled up hundreds of millions of euros in losses, particularly from its waning video business, while its 2023 acquisition of OneWeb has yet to yield the results it had hoped for due to competition and delayed deployment of technology. Finance chief Christophe Caudrelier said in May that Eutelsat was looking for capital investors. Hanwha's shares were offered at 3.00 euros ($3.42) apiece, representing a 13.9 per cent discount to Eutelsat's closing price of 3.48 euros on Wednesday, a term sheet from bookrunner Citi showed. It also marks a steep 74 per cent loss on Hanwha's initial $300 million investment made in OneWeb in 2021, with the stake now valued at just $85 million. The South Korean company said the sale, which is set to be concluded on Thursday, was not driven by an investment perspective but by a strategic shift to focus more on its core business operations. "This decision reflects a long-term strategy to concentrate on defense-related satellites and military communications, rather than on civilian satellite operations and services," Hanwha said in a statement to Reuters. A representative for Hanwha resigned from Eutelsat's board in April, signalling the company's diminishing involvement with the satellite operator. MAJOR OVERHAUL When asked by Reuters, Eutelsat said none of the other shareholders had expressed interest in selling their shares. A company spokesperson declined to comment on media reports saying France may raise its stake in the group. Eutelsat is also reshuffling its upper echelons. In a surprise move last month, it appointed Jean-François Fallacher as its new CEO and it is looking for a new chairperson after the current one announced his departure in February. Eutelsat's Paris-listed shares fell as much as 16.8 per cent in early trading on Thursday. Hanwha became a shareholder in OneWeb before it merged with Eutelsat. It is also one of OneWeb's distributors in South Korea as part of an agreement signed in 2023 with the aim of securing LEO communications for the government and providing internet access to underserved areas. Last week, South Korea's Science Ministry granted licenses to Starlink and Eutelsat OneWeb to operate in the country, with services expected to be launched soon.
CNA
05-06-2025
- Business
- CNA
South Korea's Hanwha to offload Eutelsat stake, filing shows
South Korea's Hanwha Systems is offering to sell its entire 5.4 per cent stake in Eutelsat for about 78 million euros ($85 million), a bookrunner filing showed on Wednesday, as the satellite operator moves ahead with its new financing plan. Eutelsat has garnered unprecedented attention this year from governments looking for home-grown alternatives to SpaceX's Starlink for satellite internet connectivity. The Franco-British company is seeking billions in new funding to finance the second generation of its low Earth orbit (LEO) OneWeb satellites and to fulfil commitments to the European Union's IRIS² project. Finance chief Christophe Caudrelier said in May that Eutelsat was looking for capital investors. Hanwha's shares are being offered at 3.00 euros ($3.42) apiece, representing a 13.9 per cent discount to Eutelsat's closing price of 3.48 euros on Wednesday, a term sheet from bookrunner Citi showed. It also marks a steep 74 per cent loss on Hanwha's initial $300 million investment made in OneWeb in 2021, as the stake is now valued at just $85 million. The trade is set to be concluded on Thursday. A representative for Hanwha resigned from Eutelsat's board in April, signalling the Korean company's diminishing involvement with the satellite operator. Eutelsat is reshuffling its upper echelons. In a surprise move last month, it appointed Jean-François Fallacher as its new CEO and it is also looking for a new chairperson after the current one announced his departure along with four other board members in February. Hanwha became a shareholder in OneWeb before it merged with Eutelsat in 2023, joining India's Bharti and Japan's SoftBank as OneWeb's anchor investors at the time. It is also one of OneWeb's distributors in South Korea as part of an agreement signed in 2023 with the aim of securing LEO communications for the Korean government and providing internet access to underserved areas. Last week, South Korea's Science Ministry granted licenses to Starlink and Eutelsat OneWeb to operate in the country, with services expected to be launched soon.
Reuters
05-06-2025
- Business
- Reuters
South Korea's Hanwha to offload Eutelsat stake, filing shows
June 5 (Reuters) - South Korea's Hanwha Systems ( opens new tab is offering to sell its entire 5.4% stake in Eutelsat ( opens new tab for about 78 million euros ($85 million), a bookrunner filing showed on Wednesday, as the satellite operator moves ahead with its new financing plan. Eutelsat has garnered unprecedented attention this year from governments looking for home-grown alternatives to SpaceX's Starlink for satellite internet connectivity. The Franco-British company is seeking billions in new funding to finance the second generation of its low Earth orbit (LEO) OneWeb satellites and to fulfil commitments to the European Union's IRIS² project. Finance chief Christophe Caudrelier said in May that Eutelsat was looking for capital investors. Hanwha's shares are being offered at 3.00 euros ($3.42) apiece, representing a 13.9% discount to Eutelsat's closing price of 3.48 euros on Wednesday, a term sheet from bookrunner Citi showed. It also marks a steep 74% loss on Hanwha's initial $300 million investment made in OneWeb in 2021, as the stake is now valued at just $85 million. The trade is set to be concluded on Thursday. A representative for Hanwha resigned from Eutelsat's board in April, signalling the Korean company's diminishing involvement with the satellite operator. Eutelsat is reshuffling its upper echelons. In a surprise move last month, it appointed Jean-François Fallacher as its new CEO and it is also looking for a new chairperson after the current one announced his departure along with four other board members in February. Hanwha became a shareholder in OneWeb before it merged with Eutelsat in 2023, joining India's Bharti and Japan's SoftBank as OneWeb's anchor investors at the time. It is also one of OneWeb's distributors in South Korea as part of an agreement signed in 2023 with the aim of securing LEO communications for the Korean government and providing internet access to underserved areas. Last week, South Korea's Science Ministry granted licenses to Starlink and Eutelsat OneWeb to operate in the country, with services expected to be launched soon. ($1 = 0.8764 euros)
