Hanwha's KRW 2.4 Trillion Rights Offering Plan Halted

Hanwha Solutions' plan to raise KRW 2.4 trillion through the issuance of new shares has been effectively halted due to a request for supplementary documents from financial authorities.

The Financial Supervisory Service (FSS) determined that the securities registration statement submitted on March 26 failed to disclose or clearly state important matters. Accordingly, Hanwha Solutions will be presumed to have withdrawn its rights offering plan if it does not submit a corrected registration statement within three months.

Hanwha Solutions had decided to proceed with the KRW 2.4 trillion rights offering to overcome the sluggish market conditions and pursue new businesses. Of this amount, 62.5% was planned for debt repayment.

Minority shareholders, concerned about the dilution of their holdings, took action by submitting a petition opposing the rights offering to the FSS. The market has also criticized the move, suggesting the company was attempting to repay debts incurred due to poor management with shareholder funds.