Hanon Programs is embarking on a large-scale rights providing to enhance its monetary construction. The corporate plans to boost over 980 billion received to cut back debt burden and set up a basis for mid- to long-term development.
Hanon Programs introduced on Dec. 17 via a public disclosure that it has confirmed the ultimate challenge worth of its rights providing with normal public providing of unsubscribed shares at 2,830 received per share. The corporate will increase 983.4 billion received via this rights providing.
This rights providing goals to enhance the monetary construction. Of the raised funds, 883.4 billion received will likely be used for debt reimbursement, whereas the rest will likely be allotted to working funds for accounts payable funds (roughly 51.2 billion received) and facility funds for manufacturing facility growth and upkeep (roughly 48.8 billion received).
If these plans proceed with out disruption, Hanon Programs’ debt ratio is anticipated to considerably lower from 245.7% as of the top of the third quarter this yr to round 164%.
This rights providing will likely be carried out via a rights providing with normal public providing of unsubscribed shares technique. The variety of newly issued shares is 347.5 million shares. Present shareholders (as of Nov. 14) will likely be preferentially allotted roughly 0.4 new shares per share held, with subscription for present shareholders carried out from Dec. 19 to 22. Over-subscription can be potential inside 20% of the allotted quantity.
Hankook Tire & Expertise, Hanon Programs’ largest shareholder (54.77% stake), determined via a September board decision to take part within the subscription for 152,293,930 shares (43.8% of newly issued shares), equal to 100% of the shares allotted to present shareholders. That is interpreted as an indication of accountable administration and dedication to mid- to long-term development methods for this rights providing.
Hanon Programs has constantly invested in thermal administration know-how growth and manufacturing capability growth consistent with clients’ transition to eco-friendly automobiles. Nonetheless, monetary burden has amassed through the funding growth course of, resulting in constant requires structural enchancment.
The operational effectivity insurance policies pursued after becoming a member of the Hankook & Firm Group are displaying tangible outcomes. The corporate efficiently turned to web revenue inside three quarters of the acquisition, and as of the third quarter this yr, working revenue elevated 48.2% and web revenue elevated 466.4% in comparison with the earlier quarter.
NH Funding & Securities is the lead underwriter for this rights providing. NH Funding & Securities has agreed to underwrite unsubscribed shares that will come up after most people providing subscription via a standby underwriting settlement.
Lee Su-il, vice chairman and CEO of Hanon Programs, mentioned, “This rights providing is a crucial turning level for pursuing mid- to long-term development methods primarily based on securing monetary stability,” including, “We plan to enhance profitability by systematically pursuing know-how competitiveness enhancement and enterprise portfolio development available in the market setting being reorganized round eco-friendly automobiles.”
