Norway-based REC Silicon has received an all-cash offer from Hanwha to acquire all outstanding shares in the company. Hanwha Corp. and Hanwha Solutions, currently the largest shareholders in REC Silicon, have offered NOK 2.2 (US $0.21) per share, representing around NOK 925 million (US $88.6 million).
Hanwha first invested in REC Silicon in 2022. Interest in solar panel production in the United States was growing, and Hanwha’s American manufacturing operations was leading the efforts. Qcells was building an all-inclusive silicon solar panel manufacturing facility in Georgia (ingot-wafer-cells-panels) and needed American polysilicon. REC Silicon was able to restart its polysilicon operations in Moses Lake, Washington, after receiving the Hanwha investment.
But REC Silicon stopped production in Moses Lake late last year after producing product at inferior quality levels for Qcells, Qcells has now turned to OCI in South Korea for its solar-grade polysilicon needs.
REC Silicon still operates an electronics-grade polysilicon factory in Butte, Montana.
REC Silicon’s board of directors unanimously recommends that shareholders accept Hanwha’s all-cash offer.
“Hanwha has been a supporting shareholder of the company for many years, not least in a period which has been challenging for the company, and REC believes the opportunities that this offer represents in respect of an enhanced partnership with Hanwha is firmly in its interest and in the interests of all the company’s stakeholders including the shareholders,” said Kurt Levens, CEO of REC Silicon.
If the deal goes through, Hanwha would delist REC Silicon from the Oslo Stock Exchange before providing more financial support to stabilize operations. REC’s Board believes that the company’s reduced operations make it better suited for private ownership.
“The main objective for transaction is to seek the continuation of the [REC’s] business operations. The [buyers] and the Hanwha group will strive to develop the business, and at the same time combine and integrate the business into the Hanwha group’s existing business structure,” a news release states. “As part of the discussions regarding the offer, the Hanwha group has confirmed its intention to financially support the [REC’s] operations, which may include an extension of existing shareholder loans or a new bridge loan.”
