Hanwha Solutions(009830) sold a U.S. venture investment fund for about 125.5 billion won, speeding up execution of the self-rescue plan presented during the rights offering process. Including the 300 billion won raised by issuing redeemable convertible preferred shares (RCPS), the company secured a total of 425.5 billion won.
Hanwha Solutions said on the 16th that it sold the venture investment fund it had invested in to discover U.S. innovation corporations for $84.3 million (about 125.5 billion won). The proceeds will be used to supplement resources for repaying debt that fell short due to the downsized rights offering and to improve the financial structure.
Since 2022, Hanwha Solutions has invested in the fund through a subsidiary to track technology trends in U.S. energy transition, circular economy, and carbon utilization and to secure business collaboration opportunities.
Initially excluded from sale due to its long-term investment nature, the fund was later put up for disposal as the company reviewed additional self-rescue measures to ease market concerns and shareholder burden surrounding the rights offering, opting to liquidate assets that could be monetized early. The company said the fund sale will have a limited impact on mid- to long-term business profitability.
Hanwha Solutions also plans to proceed in sequence with the plan to securitize investment assets totaling 300 billion won presented during the amended rights offering process. By pursuing the rights offering in parallel with asset sales, the company aims to secure resources for future growth investments and lower borrowing fund burdens.
Lee Jae-bin, Hanwha Solutions chief financial officer (CFO), said, "Once the rights offering is completed, we will carry out our plans for future growth investments and financial structure improvement without a hitch," adding, "With the completion of the Cartersville plant establishing a U.S. vertically integrated solar base, we expect a stable performance trend in the renewable energy segment."