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View of Hanwha Group's headquarters building in Janggyo-dong, Jung-gu, Seoul. (Photo: Hanwha Group) |
[Alpha Biz= Kim Jisun] Hanwha Group announced on April 25 that it will pursue the acquisition of Norway-based REC Silicon through a joint investment by Hanwha Corporation and Hanwha Solutions. This move is part of Hanwha’s broader strategy to position REC Silicon as a key pillar of its growing global electronic materials business.
According to the announcement, Hanwha Corporation and Hanwha Solutions, already the largest shareholders of REC Silicon, will participate in a tender offer to acquire 100% ownership of the company through an investment of approximately KRW 127 billion (around USD 94 million).
Following the acquisition, Hanwha Group plans to delist REC Silicon and focus on securing the profitability of the company's core product line, silane-based gases. The group aims to enhance REC’s financial structure and operational competitiveness to drive a turnaround to profitability. Silane gas is a critical material used primarily in semiconductor and display manufacturing processes as a silicon thin-film precursor.
Hanwha Global Division, which had previously established silane gas infrastructure in Yeosu, South Korea, to support its entry into the electronic materials sector, intends to leverage REC Silicon’s capabilities to strengthen business synergies and reinforce responsible management as a majority shareholder.
A Hanwha Group representative commented, "REC Silicon has been facing prolonged financial and operational challenges due to high debt levels, interest burdens, and weak business performance. Following the delisting, Hanwha is committed to providing appropriate financial support and enabling faster decision-making to fulfill its responsibilities as the major shareholder."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
