Hanwha Ocean shares sink over 20% after Canada loss

Stocks fell more than 23 percent after Canada chose Germany’s TKMS as preferred bidder for its submarine program, leaving Hanwha Ocean as runner-up.

KIM MIN-YOUNG
KIM MIN-YOUNG BUSINESS REPORTER
Published Modified
Officials stand on a dockside stage as Canada announces TKMS will build 12 submarines.
Canada’s Prime Minister Mark Carney announces that Canada has picked Germany’s TKMS to build 12 submarines for its navy, at the HMC Dockyard in Halifax, Nova Scotia, Canada on July 6.

Hanwha Ocean shares are falling sharply in intraday trading after the company lost its bid for Canada's submarine program.

As of 11:58 a.m. Tuesday, Hanwha Ocean shares were trading at 89,000 won ($58.5) on the Kospi, down 23.34 percent, or 27,100 won, from the previous session's closing price of 116,100 won. The stock opened at 92,800 won.

Hanwha Ocean shares had surged 8.61 percent on Monday on expectations ahead of the announcement of the preferred bidder for the Canadian Patrol Submarine Project (CPSP), but investor sentiment froze as news of the failed bid spread.

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Canadian Prime Minister Mark Carney announced Monday, Canadian local time, at the naval base in Halifax, Nova Scotia, that TKMS had been selected as the preferred bidder for the CPSP. The expectations built up the previous day were dashed, causing Hanwha Ocean shares to take a dive.

Carney added, however, that Canada retains the authority to open negotiations with Hanwha Ocean, the runner-up, should talks with TKMS fall through.


BY KIM MIN-YOUNG [[email protected]]

industry hanwha ocean canada business stock plunge tkms submarine program money

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