Hanwha Group Chairman Kim Seung-youn. (Photo: Hanwha Group)

Hanwha Chemical said that it has been focusing on a merger between its subsidiaries Hanwha Q Cells and Hanwha Solar Holdings to improve the operation of its solar modules manufacturing sector.

The company said that Solar Holdings gave its letter of intention for a merger to Q Cells, and Q Cells’ board of directors’ will decide on the move at a meeting later.

Hanwha Chemical owns 100 percent of Solar Holdings. Solar Holdings holds 94 percent stock in Q Cells.

The company will be delisted from Nasdaq once the merger is confirmed. The delisting process will cost approximately 50 billion won and will be completed by year-end, the company added.

The move comes amid the Trump administration’s recent measures to strengthen protective trade policies, pressuring foreign solar businesses with sluggish investment and financing.

The company added that a merger will help the company save costs, while billions of won are currently being spent to meet the U.S. standards to keep the company listed.

Hanwha Q Cells, a flagship company of Hanwha Group, is a leading total solar power solution provider with the world’s largest cell production capacity. Its photovoltaic products range from modules to kits, systems and large-scale solar power plants. The company operates international manufacturing facilities in Malaysia and China.

Korean chemical company Hanwha Chemical Corp has concluded the buyout of photovoltaics (PV) manufacturer Hanwha Q Cells Co Ltd by merging it into a wholly-owned unit.

Hanwha Q Cells said today it has requested that its American Depositary Shares (ADSs) cease trading on The Nasdaq Stock Market as soon as practicable.

Under the terms of the deal that was announced in October 2018, Hanwha Solar Holdings Co Ltd has acquired every Hanwha Q Cells ordinary share it did not already own for $0.198 in cash, and each ADS, representing 50 shares, for $9.90 in cash. The total equity value of the transaction was previously estimated at about $825 million (724 million euros).

Prior to the transaction Hanwha Solar Holdings held a stake of some 93.9% in the solar cell and module maker.

At end-November 2018, Hanwha Q Cells reported that it had turned to an attributable net loss of USD 164.6 million in the third quarter of the year as its results were burdened by one-off items and foreign exchange losses.

Hanwha Q CELLS Co. Ltd, is one of the world´s largest and most recognized photovoltaic manufacturers for its high-quality, high-efficiency solar cells and modules.

It is headquartered in Seoul, South Korea (Global Executive HQ) and Thalheim, Germany (Technology & Innovation HQ). With its diverse international manufacturing facilities in South Korea, Malaysia and China, Hanwha Q CELLS is in a unique position to flexible address all global markets. Hanwha Q CELLS offer the full spectrum of photovoltaic products and solutions, from modules to systems and large-scale solar power plants.

Hanwha Q Cells, as an affiliate of the Hanwha Group with assets over $150 Billion, is both a trusted and bankable solar partner for our customers worldwide.

Our cell production capacity of 8 GW and solar module manufacturing capacity of 8 GW (as of 2017 second half) makes us the largest cell manufacturers and one of the biggest solar module manufacturers in the world. We have a Tier 1 Bloomberg rating and we are a BNEF Top Tier module supplier.

Through our growing global business network spanning Europe, North America, Asia, South America, Africa and the Middle East, we are able to provide unparalleled solar products and services in the utility, government, commercial and residential markets.