Hanwha Group, set to take over four Samsung affiliates, has come under question regarding its ability to finance the 2 trillion won ($1.82 billion) deal, while rumors circulate that the country’s 10th-largest family-run conglomerate may resort to selling shares of its subsidiaries to raise cash.
In November, Hanhwa announced it would acquire four of Samsung Group’s chemical and defense affiliates. The announcement immediately raised speculation about how it will secure the needed cash, with some expecting it to offload its shares in Hanwha Galleria Co. and Hanwha Life Insurance Co.
The speculation rose further last week after Hanwha Group appeared to leave some room for the possibility, saying in its regulatory filing that “nothing has been decided related to Hanwha’s sales of shares in Hanwha Life Insurance.”
There are also those who remember Hanhwa’s past botched attempt to buy a local shipbuilder.
In 2009, the conglomerate gave up its plans to acquire a 50.4 percent stake in Daewoo Shipbuilding & Marine Engineering Co. when it could not raise 6 trillion won for the deal due to the global financial crisis and economic slump. (Yonhap)
