September 13 (Renewables Now) - South Korea’s Hanwha Advanced Materials Corp, owned by Hanwha Chemical Corp (KRX:009830), will merge by late October with solar cell manufacturer Hanwha Q Cells Korea Corp to simplify the group structure.
Hanwha Chemical announced this week that Hanwha Advanced Materials will buy a 50.15% stake in Hanwha Q Cells Korea from Hanwha General Chemical Co, an additional 20.44% from Hanwha Corp (KRX:000880) and 9.97% from H-Solution Corp.
Hanwha Chemical will continue to hold the remaining shares directly and will participate in a capital hike at Hanwha Advanced Materials by investing KRW 502.8 billion (USD 447.8m/EUR 385.4m) in total. It said in a regulatory filing that a portion of the sum -- KRW 439.5 billion -- will be made toward payment for the merger between Hanwha Advanced Materials and Hanwha Q Cells Korea, while the rest -- KRW 63.3 billion -- will be used for "investments in facilities".
An official from Hanwha Chemical told The Pulse that this move will simplify the solar business of the group by placing it under one parent to better respond to market needs.
In August, Hanwha Chemical announced that Hanwha Solar Holdings Co Ltd will merge with its 94%-owned Hanwha Q CELLS Co Ltd (NASDAQ:HQCL), a move that would result in the delisting of the latter from NASDAQ, subject to approvals. The decision was made due to “a reduction in the need to keep HQCL [...] listed on the NASDAQ and for enhancement of management efficiency of the solar energy business”.
(KRW 1,000 = USD 0.891/EUR 0.767)