Hanwha Corp. said Wednesday it will participate in a rights offering by Hanwha Solutions worth about 2.4 trillion won ($1.63 billion), backing the affiliate’s efforts to strengthen its financial position and growth capacity.
Hanwha Corp., the largest shareholder of Hanwha Solutions with a 36.66 percent stake excluding treasury shares, approved the plan at a board meeting in Seoul. The company will fully subscribe to its allotted 21.1 million new shares and may apply for up to 20 percent additional shares through oversubscription.
If fully exercised, Hanwha Corp. could acquire up to 25.3 million shares, with a total investment of about 843.9 billion won. The final amount may vary depending on the final offering price and unsubscribed shares.
The company said its board concluded the participation was justified from an investment perspective, citing Hanwha Solutions’ underlying value based on external assessments. Funding will be secured through asset monetization to avoid undermining financial stability.
Hanwha Corp. said the move reflects strong backing from major shareholders, including Chairman Kim Seung-youn and Vice Chairman Kim Dong-kwan, for Hanwha Solutions’ plan to improve its balance sheet and competitiveness.
Hanwha Solutions plans to issue 72 million new shares, with proceeds to be used for debt repayment and future investments.
sahn@heraldcorp.com
