Hanwha Co. said on the 8th it will take part in Hanwha Solutions' rights offering with an oversubscription filled to the maximum limit.
Hanwha Co. held a board meeting on the morning of the same day at the Hanwha Building in Jung-gu, Seoul, and approved participation in Hanwha Solutions' shareholder-allotted rights offering. The directors were said to have judged, based on assessments by external institutions, that participation in the rights offering is reasonable in terms of investment profitability given the current valuation of Hanwha Solutions.
Hanwha Co. plans to invest 834.9 billion won to acquire 25,340,255 new shares. This includes acquiring the full allotment to Hanwha Co. of 21,118,546 new shares at 33,000 won per share, plus up to an additional 20% under the maximum oversubscription limit. Hanwha Co. said the aggregates may change depending on the final issue price and the size of any unsubscribed shares.
Hanwha Co. is a company in which Chair Kim Seung-youn and Vice Chair Kim Dong-Kwan and others hold 54.0% equity. Hanwha Co. said its participation means the largest shareholders agree with the flagship subsidiary Hanwha Solutions' plan to strengthen financial soundness and business competitiveness through the rights offering. A Hanwha Co. official said, "It helps reduce the burden on small shareholders to participate in the rights offering."
Hanwha Co. plans to raise funds for participating in Hanwha Solutions' rights offering by liquidating noncore assets and other measures. This is to avoid damaging Hanwha Co.'s financial stability and business capabilities. It also plans to push ahead with its mid- to long-term business strategy without disruption.
Hanwha Solutions' rights offering will proceed by first allocating 20% of the new shares to the employee stock ownership association, then distributing the remainder to existing shareholders according to equity ratios. The record date for new share allocation is on the 14th of next month, subscriptions for existing shareholders will be held on June 22 and 23, and the public offering subscription period is from June 25 to 26. The scheduled listing date for the new shares is July 10.