Hanwha Techwin, the defense unit of Hanwha Group, said on April 8 that it had signed a formal contract to take over Doosan Defense Systems & Technology (DST), a high-tech weaponry manufacturing unit of Doosan Group. As previously reported, Hanwha Techwin agreed to pay 695 billion won to acquire Doosan DST.
Doosan owns a 51 percent stake in Doosan DST through its special purpose company, Doosan Investment Portfolio (DIP) Holdings. The remaining 49 percent stake in Doosan DST is owned by Odin Holdings, jointly established by Mirae Asset PEF and IMM Private Equity.
Since Hanwha Techwin was picked as the preferred bidder for Doosan DST on March 29, Doosan and Hanwha Techwin have been negotiating a share purchase agreement (SPA). To speed up the sale, the two even skipped due diligence. The sale will be completed when Hanwha Techwin makes payment next month after reporting the merger to the Korea Fair Trade Commission (KFTC) and going though the Financial Services Commission (FSC)’s eligibility screening of Hanwha Techwin as the largest shareholder of Doosan DST.
With the acquisition, Hanwha Techwin will be able to diversify its defense product lineup to include navigation systems and anti-aircraft guided weapon systems. Meanwhile, the sale is expected to help Doosan Group improve its financial footing.
