Hanwha Chemical completes buyout of Hanwha Q Cells

Hanwha solar modules. Source: Hanwha Group

January 17 (Renewables Now) - Korean chemical company Hanwha Chemical Corp (KRX:009830) has concluded the buyout of photovoltaics (PV) manufacturer Hanwha Q Cells Co Ltd (NASDAQ:HQCL) by merging it into a wholly-owned unit.

Hanwha Q Cells said today it has requested that its American Depositary Shares (ADSs) cease trading on The Nasdaq Stock Market as soon as practicable.

Under the terms of the deal that was announced in October 2018, Hanwha Solar Holdings Co Ltd has acquired every Hanwha Q Cells ordinary share it did not already own for USD 0.198 in cash, and each ADS, representing 50 shares, for USD 9.90 in cash. The total total equity value of the transaction was previously estimated at about USD 825 million (EUR 724m).

Prior to the transaction Hanwha Solar Holdings held a stake of some 93.9% in the solar cell and module maker.

At end-November 2018, Hanwha Q Cells reported that it had turned to an attributable net loss of USD 164.6 million in the third quarter of the year as its results were burdened by one-off items and foreign exchange losses.

As at end-September, the company had an in-house annual production capacity for cells of 4,500 MW and just as much for modules. It also had additional module availability of up to 3,900 MW from affiliate Hanwha Q Cells Korea Corporation, which at the time was seen to reach 1,700 MW of nameplate module capacity in the US in the first quarter of 2019.

(USD 1.0 = EUR 0.877)

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