The Financial Supervisory Service again put the brakes on Hanwha Solutions' rights offering plan. Hanwha Solutions relaunched a rights offering scaled down by about 600 billion won, but the plan is expected to face setbacks.
On the 30th, the Financial Supervisory Service (FSS) disclosed that it had requested Hanwha Solutions to submit another amended registration statement for the rights offering that was revised and filed on the 17th. This is the second amendment request following the one on the 9th.
Through the disclosure, the Financial Supervisory Service (FSS) said, "The securities registration statement does not properly meet formal requirements, contains false entries on material matters, or has unclear descriptions," and noted that "this falls under cases that may impede investors' reasonable investment decisions or cause serious misunderstandings for investors."
Accordingly, the securities registration statement was suspended without being accepted. If Hanwha Solutions does not resubmit an amended registration statement within three months from this date, the filing will be treated as withdrawn.
Earlier, two days after the regular shareholders meeting, on the 26th of last month, Hanwha Solutions announced a rights offering plan to newly issue 72 million common shares. The funds to be raised were about 2.4 trillion won. At the time, the company said deterioration in the global solar and chemical industries made it necessary to improve its financial structure.
However, criticism arose because the company rushed to approve and announce a large-scale rights offering without sufficient communication with shareholders, and because the primary purpose was debt repayment.
Amid this, on the 9th the Financial Supervisory Service (FSS) requested Hanwha Solutions to submit an amended registration statement for the rights offering. Hanwha Solutions revised and filed the offering size at about 1.8 trillion won, 600 billion won smaller than originally planned, but the FSS again requested an amended filing on the 30th.