# Hyundai Wia Sells Defense Unit to Hyundai Rotem for $269.5M

> Hyundai Wia transfers defense division to Hyundai Rotem for 358.4 billion won, strengthening vertical integration and credit ratings.
- Title: Hyundai Wia Sells Defense Unit to Hyundai Rotem for $269.5M
- Summary: Hyundai Wia transfers defense division to Hyundai Rotem for 358.4 billion won, strengthening vertical integration and credit ratings. Hyundai Wia sells…
- Keywords: hyundai wia, hyundai rotem, nice credit rating, defense unit, 358.4 billion won, 269.5 million, vertical integration, credit ratings, hybrid engines, revenue growth, ebit margin, business transfer
- Source: BigGo Finance — https://finance.biggo.com/news/13639cda-3e62-4f69-9bf3-ce2a65bda638
- Author: BigGo Finance
- Published: 2026-10-19T10:25:20+00:00
- Read time: 1 min
- Topics: hyundai wia, hyundai rotem, nice credit rating, defense unit, 358.4 billion won, 269.5 million, vertical integration, credit ratings, hybrid engines, revenue growth, ebit margin, business transfer
## Deal Announcement
Hyundai Wia signed business transfer agreement to sell Special Business Division to Hyundai Rotem for 358.4 billion won (approximately $269.5 million).
## Financial Impact
Defense unit accounts for 4.6% of revenue but generates 19.6% of company-wide EBIT, weakening near-term earnings power.
## Hyundai Rotem Benefits
Hyundai Rotem will internalize gun barrel production, strengthening defense vertical integration and expanding revenue to 3.2153 trillion won.
## Credit Rating Assessment
NICE Credit Rating assessed transaction impact on creditworthiness as limited, flagging new business profitability and operating efficiency gains.
## Transaction Timeline
Deal closes by March 31, 2.027, following special resolution at shareholders' meeting on November 27, 2024.
## Defense Segment Performance
Defense segment revenue: 393.1 billion won (4.6% of total), assets: 354.9 billion won (5.0% of total), EBIT: 40 billion won (19.6% of total).
## Auto Parts Decline
Hyundai Wia's auto parts EBIT fell from 218.6 billion won in 2023 to 157.7 billion won in 2024, margin dropped from 2.0% to 1.5%.
## Reinvestment Strategy
Hyundai Wia will channel sale proceeds into HVAC systems and target 14.8 trillion won revenue by 2035 with 5.9% annual growth.
## Financial Health
Hyundai Wia has negative net debt of 284.6 billion won, debt-to-equity ratio of 73.5%, and net cash position.
## Hyundai Rotem Financials
Hyundai Rotem's defense segment revenue tripled to 3.2153 trillion won, EBIT expanded to 967.3 billion won, margin fell to 25.6%.
## Hurdles to Close
Deal may be withdrawn if appraisal rights exceed 140 billion won (approximately $105.3 million) by dissenting shareholders.
## Valuation Details
Defense unit valued at 480 billion won (approximately $361.0 million) using free cash flow to firm method.
## Key takeaway

Hyundai Wia sells defense unit to Hyundai Rotem for $269.5 million, maintaining credit ratings while focusing on future mobility.