Thales Group, a French multinational aerospace and defense company, has decided to sell its 50 percent stake in Hanwha Thales to Hanwha Group.
When Samsung sold its defense unit to Hanwha last year, Thales and Hanwha signed a put/call option agreement for Thales' 50 percent share in Hanwha Thales, former Samsung Thales. Under the agreement, Thales has a put option that allows it the right to sell its 50 percent stake to Hanwha one year after Hanwha Group completes the acquisition process, while Hanwha is given a call option to buy the shares.
Accordingly, Thales has had the right to exercise the put option for 40 days from June 29 to August 7 and Thales officially notified Hanwha of the sale of all of its shares, amounting to 50%, at the price of 288 billion won (US$253.86 million).
Hanwha Thales is the nation’s first defense joint venture established in 2000 by Samsung Electronics’ defense unit and France’s Thales with the stake ratio of 50:50. The joint venture has grown with research and development in advanced defense electronics products, such as radar, command and control and communications and command and control.
Hanwha Group plans to accept Thales’ decision and continuously maintain and expand the partnership between the two companies, although the joint venture will be wholly owned by Hanwha.
With the goal of developing its defense unit as the core business, Hanwha Group took over Samsung Techwin and Samsung Thales in 2015 and Doosan DST this year, pursuing aggressive expansion as the nation’s number one total defense company. The group has also turned its eyes from the domestic market to global markets now, seeking various export expansion strategies.