#South Korea #Seoul #Hanon Systems #Hankook Company Group #Automotive Thermal Management

Hanon Systems Launches Major Rights Offering

Hanon Systems, a prominent name in automotive thermal management solutions and part of the Hankook Company Group, recently announced its plans for a major rights offering that could raise approximately 900 billion KRW. This strategic move aims to bolster the company’s financial foundation while enhancing its operational capabilities.

Understanding the necessity for financial stability in today's competitive environment, Hanon Systems’ board of directors approved the issuance of new shares as part of this offering. The company intends to release 347,500,000 registered common shares, translating to about 51.20% of the existing share count. Hanon Systems has revealed that 20% of these shares are specifically allocated for its Employee Stock Ownership Association, while the rest will be available to existing shareholders as of November 14. Any shares that remain unsubscribed will later be offered publicly.

The expected issue price is pegged at 2,590 KRW per share, a figure that reflects the lower value derived from the average price over the last month and the closing price the day before the board's resolution. The strategic discount of 15% aims to minimize the dilution effect for existing shareholders while also improving corporate value. The final pricing will be established on December 16.

The funds generated from this rights offering are strategically earmarked for several critical uses. A major portion will be directed towards debt repayment, thereby enhancing the financial resilience of the company. Additionally, the capital raised will support operational funds necessary for the continuation of existing facilities and investments in state-of-the-art production equipment. These funds are aligned with Hanon Systems' objective of enhancing its corporate value and facilitating long-term sustainable growth.

In comments regarding this initiative, Soo-il Lee, the Vice Chairman and CEO of Hanon Systems, stated, "Stabilizing our financial structure is an essential step toward sustainable growth. Through continuous technological innovation and the strengthening of our business capabilities, we will remain responsive to market changes and committed to enhancing both corporate and shareholder value."

Founded in 1986, Hanon Systems has evolved into a global leader in thermal management solutions and operates 50 manufacturing sites across 21 countries, employing over 20,000 personnel. The move to enhance its financial standing reflects a proactive approach to adapt to market dynamics and ensure the company remains competitive in the automotive sector.

As the automotive industry embraces new technological advancements, companies like Hanon Systems are focusing on integrating sustainability within their operational frameworks, further indicating their commitments not just to growth but also to broader environmental responsibilities. To stay updated on their initiatives and offerings, visit Hanon Systems.

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