이 기사는 2022년 04월 07일 08시09분 thebell에 표출된 기사입니다

South Korea’s Hanwha Group looks to raise money from an external investor by splitting off Hanwha Energy’s Australian solar power business.

The Korean conglomerate is in a process to raise funds by separating Hanwha Energy’s Australian solar power energy division and sell a stake in the division to an external investor, according to industry sources on Tuesday. A 20% stake in the company is expected to be sold for 160 billion won ($132 million), meaning the division's value is estimated at around 800 billion won.

Hanwha Energy contacted private equity firms on its own, without hiring an adviser. Woori Private Equity (Woori PE) is highly likely to purchase the stake from the company. The PE firm is in talks with Hanwha Energy and is reportedly carrying out marketing campaigns to invite institutional investors to join a fund.


Founded in 2005, Woori PE is a first-generation homegrown PE firm, but has lost its presence in the domestic market amid fierce competition with independent PE firms. The firm has been aggressively increasing its assets since chief executive Kim Kyung-woo took office in 2018.

Hanwh Group has ramped up efforts to capitalize on ample external liquidity as the Korean conglomerate is increasingly in need of cash to fund existing and future investments. Such efforts have mostly been done via split-off of its affiliates’ overseas business and selling a stake in the business to a domestic external investor. The latest Australian deal can also be seen as part of its efforts to raise money from outside.

Last year, Hanwha Solutions sought to raise money by handing over a 100% stake in its wholly owned Chinese PVC subsidiary, Hanwha Chemical Ningbo, to a newly created entity and selling 49% of the new entity. The country’s Heimdall Private Equity will take over the stake for about 670 billion won.

Hanwha Solutions is also set to split off its advanced materials business. It selected Glenwood Credit as a preferred bidder to purchase a 49% stake in the division for 600 billion won. (Reporting by Gyoung-tae Kim)