Dave Savastano11.24.14
REC Solar ASA, acting through a subsidiary, has reached an agreement with Bluestar Elkem Investment Co. Ltd. (Hong Kong), whereby Bluestar Elkem will purchase 100% of the shares in a Luxembourg company (to be established) which will own REC Solar Holdings AS and all of the assets and liabilities of REC Solar at a cash purchase price equal to NOK 108.50 per share in REC Solar.
The Transaction represents a premium of 22.6 % and 27.1% to the 1 and 3-month volume weighted average share price, respectively. The total cash consideration is NOK 4,340 million ($607 million). REC Solar ASA’s 1,700 employees worldwide generated revenues of USD $647 million in 2013.
The transaction is subject to approval by an extraordinary general meeting of REC Solar, expected to be held no later than Jan. 16, 2015.
The Board of Directors of the company has unanimously resolved to recommend the Transaction to its shareholders.
“This proposed transaction is a result of an extensive and broadly marketed process where the company has explored opportunities to maximize value for shareholders,” said Ole Enger, chairman of REC Solar. “We are pleased that we today are in position to announce the combination of the Elkem Group and REC Solar. The Board of Directors of REC Solar views the combination as a positive outcome for the company, its excellent workforce and other stakeholders, and we look forward to working with the Elkem Group to complete the Transaction. The Board believes that a combination with the Elkem Group will provide a strong platform to further develop REC Solar.”
“The Elkem Group has a strategic goal to grow its presence in the solar industry,” added Helge Aasen, CEO of Elkem AS. “The ambition is to establish a leading integrated PV player. The Elkem Group and REC Solar have developed a strong business relationship and there is a good strategic match between the companies ensuring that a combined entity will have a strong basis for further development of the business by leveraging REC Solar’s leading global brand, strong distribution channels and reputation for quality.”
The Transaction represents a premium of 22.6 % and 27.1% to the 1 and 3-month volume weighted average share price, respectively. The total cash consideration is NOK 4,340 million ($607 million). REC Solar ASA’s 1,700 employees worldwide generated revenues of USD $647 million in 2013.
The transaction is subject to approval by an extraordinary general meeting of REC Solar, expected to be held no later than Jan. 16, 2015.
The Board of Directors of the company has unanimously resolved to recommend the Transaction to its shareholders.
“This proposed transaction is a result of an extensive and broadly marketed process where the company has explored opportunities to maximize value for shareholders,” said Ole Enger, chairman of REC Solar. “We are pleased that we today are in position to announce the combination of the Elkem Group and REC Solar. The Board of Directors of REC Solar views the combination as a positive outcome for the company, its excellent workforce and other stakeholders, and we look forward to working with the Elkem Group to complete the Transaction. The Board believes that a combination with the Elkem Group will provide a strong platform to further develop REC Solar.”
“The Elkem Group has a strategic goal to grow its presence in the solar industry,” added Helge Aasen, CEO of Elkem AS. “The ambition is to establish a leading integrated PV player. The Elkem Group and REC Solar have developed a strong business relationship and there is a good strategic match between the companies ensuring that a combined entity will have a strong basis for further development of the business by leveraging REC Solar’s leading global brand, strong distribution channels and reputation for quality.”