Hanwha Corp. announced Wednesday its significant participation in a rights offering by its affiliate, Hanwha Solutions, valued at approximately 2.4 trillion won ($1.63 billion). This strategic move underscores Hanwha Corp.’s commitment to bolster Hanwha Solutions’ financial foundation and drive its long-term growth capabilities.
As the primary shareholder with a 36.66 percent stake in Hanwha Solutions (excluding treasury shares), Hanwha Corp. formally approved the investment plan during a board meeting held in Seoul. The company confirmed its full subscription to its allocated 21.1 million new shares and also indicated its intent to apply for up to an additional 20 percent through oversubscription, maximizing its support for the capital increase.
Should Hanwha Corp. fully exercise its option, the conglomerate could acquire up to 25.3 million shares in Hanwha Solutions, representing a total investment of approximately 843.9 billion won. The precise final investment figure remains subject to the definitive offering price and the volume of unsubscribed shares from other participants.
Hanwha Corp.’s board emphasized that its participation is a sound investment decision, based on external assessments affirming Hanwha Solutions’ strong underlying value. The necessary funding will be meticulously sourced through asset monetization strategies, ensuring the transaction does not compromise Hanwha Corp.’s existing financial stability.
This decisive action by Hanwha Corp. reflects the unwavering backing from key shareholders, including Chairman Kim Seung-youn and Vice Chairman Kim Dong-kwan. Their support highlights the group’s collective confidence in Hanwha Solutions’ strategic initiatives aimed at strengthening its balance sheet and enhancing overall market competitiveness.
Hanwha Solutions plans to issue a total of 72 million new shares, with the capital raised primarily earmarked for crucial debt repayment and strategic future investments across its business segments.
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