The Korea Herald


Hanwha sells partial stake in US-based Nikola

By Jie Ye-eun

Published : July 1, 2021 - 15:11

    • Link copied

(Yonhap) (Yonhap)
Hanwha General Chemical and Hanwha Energy have sold a 0.74 percent stake in US electric truck maker Nikola Corp. as part of efforts to secure funds for new eco-friendly projects, including hydrogen, a filing showed Thursday.

Green Nikola Holdings, Hanwha’s US subsidiary, offloaded 2.9 million shares from its previously owned 22.13 million shares, according to its US Securities and Exchange Commission filing published Wednesday there.

Following the transaction, its equity holding in Nikola has been reduced to 4.86 percent. The total value of the funds that the company earned from the stake sale marked $53.67 million.

Green Nikola Holdings previously announced in March a plan to sell up to half its stake in the electric truck maker, or 11.05 million shares, over a six-month period from June 9 to Dec. 10.

“Despite the (planned) stake sales, we’ll continue our partnership with Nikola. ... Through our cooperation, we’ll construct an eco-friendly mobility ecosystem using hydrogen and reinforce our hydrogen-related business’s value chain,” a Hanwha official said.

Shares of Nikola gained 1.92 percent to close at $18.06 in Nasdaq trading on Wednesday. The stock, however, has seen a significant drop in value compared to the trading price on its early June market debut last year of $33.75 per share.