Hanwha Solutions has secured a total of 5 trillion won by selling part of its equity in its German subsidiary, Q Energy Solutions SE, for 400 billion won and establishing a price return swap (PRS) contract with Samsung Securities to acquire equity in Q Energy Solutions for 100 billion won.

Logo of Hanwha Solutions' subsidiary Q Energy Solutions SE in Germany. / Courtesy of Q Energy Solutions website

According to the Financial Supervisory Service's electronic disclosure system, Hanwha Solutions held a board meeting on the 23rd and decided to sell 2,784,293 shares of Q Energy Solutions. The disposal amount is approximately 400 billion won. Once the sale of shares is completed, Hanwha Solutions' equity stake in Q Energy Solutions will decrease from 100% to 77.35%. The sale of equity was conducted to secure liquidity and improve financial structure.

Q Energy Solutions is a renewable energy corporation headquartered in Germany that operates solar and wind businesses in Europe. Hanwha Solutions incorporated it as a subsidiary in 2021 when it acquired the French renewable energy developer RES France for 987.8 billion won, becoming Hanwha Solutions' European energy mid-holding company.

Hanwha Solutions entered into a PRS contract with Samsung Securities, the purchaser of the equity in Q Energy Solutions, while selling its shares. Under the PRS contract, if the value of the underlying asset, the shares, is higher at the time of settlement than at the contract time, the purchasing financial firm will pay the selling corporation the increase in share value, and if the value of the underlying asset decreases, the corporation will pay the loss amount to the purchasing financial firm, the investor.

Samsung Securities will acquire 1,531,361 shares of Q Energy Solutions for 220 billion won on the 26th and immediately sell them to a special purpose company (SPC). This SPC is expected to enter into a PRS agreement with Hanwha Solutions. A Hanwha Solutions official said, "We cannot disclose the contract terms."