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Hanwha Solutions. (Photo courtesy of Hanwha Solutions) |
[Alpha Biz= Kim Jisun] Hanwha Corp. plans to participate in a large-scale rights offering by its affiliate Hanwha Solutions, funding the investment through asset liquidation rather than additional borrowing.
According to industry sources on April 5, Hanwha Corp., the largest shareholder of Hanwha Solutions with a 36.31% stake, intends to fully subscribe to its allocated shares in the capital increase. Based on the new share allocation ratio (approximately 0.33 new shares per existing share), Hanwha Corp. is expected to receive around 21.12 million shares, representing an investment of approximately KRW 700 billion.
The company is also reportedly considering an additional 20% “oversubscription,” which would allow it to acquire unsubscribed shares after the initial offering. If Hanwha Corp. subscribes to 120% of its allocation, its total investment could rise to approximately KRW 840 billion.
To finance the participation, Hanwha Corp. has opted for asset liquidation instead of debt financing, amid concerns over its already elevated leverage. The company’s standalone debt ratio increased from 194.3% in 2024 to 209.6% last year, and could approach 300% following a planned corporate split in July, which would reduce equity while leaving liabilities largely intact.
Potential funding methods include the sale of real estate or equity stakes in other companies. Given that the subscription payment deadline for Hanwha Solutions’ rights offering is June 30, divestment of non-core equity holdings is considered the more likely option.
The exact scale of participation and funding strategy will be finalized through a board resolution.
Hanwha Solutions previously announced plans to raise KRW 2.4 trillion through the rights offering. Of the proceeds, KRW 1.5 trillion will be used to repay debt, while the remaining KRW 900 billion will be allocated to capital expenditures.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
