South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) is expected to be renamed Hanwha Ocean after being acquired by Hanwha Corporation.
DSME’s directors announced that a vote on amendments to the articles of incorporation, such as changing the company name to Hanwha Ocean, will be held during an extraordinary general meeting of shareholders on 23 May.
On 26 September 2022, Hanwha, one of South Korea’s chaebols, was chosen as the preferred bidder to acquire 49.3% of DSME’s shares for US$1.39 billion, while state policy lender Korea Development Bank would retain a 28.2% stake.
DSME had been placed under KDB’s control after a debt-for-equity swap in January 2017.
Hanwha said it sees synergies between the ship construction business and its own defense and green energy businesses.
During the EGM, DSME will appoint nine new directors, including three executive directors, five independent directors and a non-commercial director.
Candidates for the executive directors are Hanwha’s support division president Kwon Hyuk-woong, Hanwha TOTAL Energy’s former CEO Kim Jong-seo, and Hanwha Energy’s former CEO, Chung In-seop. Hanwha vice-chairman Kim Dong-kwan is expected to be chosen as DSME’s non-commercial director.
George P. Bush, a partner at US law firm Michael Best & Friedrich LLP, and a nephew of former US President George W. Bush, is one of the candidates put forth to be among DSME’s independent directors.
Martina Li
Asia Correspondent
