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UPDATE 1-Hanwha SolarOne to buy affiliate in bid to avoid U.S. duties
December 8, 2014 / 1:07 PM / 3 years ago

UPDATE 1-Hanwha SolarOne to buy affiliate in bid to avoid U.S. duties

(Adds details, background, shares)

Dec 8 (Reuters) - Hanwha SolarOne Co Ltd will buy Germany-based affiliate Q Cell Investment Co Ltd in a deal valued at about $1.2 billion to avoid U.S. tariffs on China-made products.

Q Cell, owned by Hanwha SolarOne’s parent Hanwha Holdings Co Ltd, has plants in Malaysia, which are not subject to U.S. and European anti-dumping tariffs.

South Korea-based Hanwha Holdings said the deal would create a combined company with an enterprise value of about $2 billion.

Solar panel makers with plants in China have been hurt by anti-dumping duties imposed by the United States and Europe, and a cut in subsidies for solar products in Europe.

Under the deal, Hanwha SolarOne will issue about 3.7 billion shares to Hanwha Solar Holdings.

Hanwha Solar Holdings’ stake in Hanwha SolarOne will rise to about 94 percent after the transaction from about 45.7 percent currently.

Hanwha SolarOne Chief Executive Seongwoo Nam will be the CEO of the combined company.

Hanwha SolarOne’s shares closed at $1.62 on Friday on the Nasdaq. Up to Friday’s close, the stock had fallen about 42 percent this year. (Reporting by Narottam Medhora in Bengaluru; Editing by Kirti Pandey)

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