As Hanwha Solutions is planning a rights offering worth 2.4 trillion won, Hanwha, the largest shareholder, is said to be considering asset securitization instead of borrowing. Hanwha appears set to use asset securitization as a means to maintain its financial soundness and, by raising more than 700 billion won through it, inject the funds into Hanwha Solutions.
According to the industry on the 5th, Hanwha, the largest shareholder of Hanwha Solutions (36.31% equity), is reportedly reviewing not only taking up more than 100% of the shares allocated to it in this rights offering, but also an "excess subscription" to apply for an additional 20% of the number of shares as a responsible move as a major shareholder. If Hanwha participates at 100%, the number of shares allocated is estimated at about 21.12 million shares—roughly 700 billion won—taking into account the new share allotment ratio (about 0.33 shares per share). If it proceeds with the excess subscription, the total outlay is expected to rise to more than 800 billion won.
The issue is funding. As of last year on a separate financial statement basis, Hanwha held 130.3 billion won in cash and cash equivalents, making it difficult to cover the payment for the rights offering without separate financing.
In this regard, Hanwha is said to be preparing the funds to participate in the rights offering through asset securitization rather than borrowing. If the parent company takes on new debt for a subsidiary that needs liquidity, it could undermine the legitimacy and intent of the rights offering. In addition, if Hanwha takes on additional borrowing, its financial soundness could deteriorate.
On a separate basis, Hanwha's liability ratio rose to 209.6% last year from 194.3% in 2024. Moreover, if the spin-off scheduled for Jul. is carried out, capital will be split while liabilities remain, pushing the liability ratio to around 300%.