Hanjin Heavy Industries can be split from the Hanjin Heavy Industries Group

Hanjin Heavy Industries is to be split from the Hanjin Heavy Industries Group, if shareholders meeting next month agree a directors' decision today. The HHI board of directors intends that the company be divided into Hanjin Heavy Industries Holdings and Hanjin Heavy Industries Co, saying that the Group needs an advanced holding structure to ensure continuous development and cope with domestic and foreign environments. Hanjin Heavy Industries Holdings will control Hanjin HI, Hanil Leisure, Hankuk Total Technology, Hanjin City Gas and Hacor Inc. Each company will establish its own management system and is intended to focus on core business through ‘optimal strategy and efficient investment’. Shareholders tries will receive 0.27 shares in Hanjin Heavy Industries Holdings and 0.73 shares in Hanjin Heavy Industries for each share in the existing HHI. The decision must await the approval of a shareholders’ meeting in June.