The Chinese solar panel maker, Trina Solar, announced this morning that it has received a preliminary offer from a “Buyer Group” consisting of its CEO, Jifan Gao, and Shanghai Xingsheng Equity Investment & Management Co., to acquire all of the outstanding shares of the company not currently owned by the Buyer Group. If approved this deal would result in the company being taken private.
Trina Solar said the Buyer Group is offering to purchase the remaining shares at a price of $11.60 per American depositary share(ADS), a 21.5% premium over the stock’s December 11th close.
This offer also represents a 20.2% premium above the average closing price of the company’s ADSs over the last 90 trading days.
Trina Solar’s Board has formed a special committee consisting of two independent directors, Sean Shao and Qian Zhao, to consider the proposal. In a press release from this morning, the company cautioned that it has just received the proposal letter and has not had an opportunity to carefully review and evaluate it yet, nor has the Board made any decision with respect to the company’s response to the proposal.
The timing of this news is interesting, as the company announced just last week that it was exiting the EU price undertaking, and would service the European market from manufacturing facilities outside of China rather than continue to be subject to the import duties levied on Chinese made panels.
Trina Solar is also rumored to be considering establishing a “yieldco” in the future.
Tracey is an accountant and entrepreneur with a passion for nature. This passion is what spurred her interest in renewable energy, and the rest is history as they say. Tracey is a principal in Energy Think Group, the publisher of Solar Thermal Magazine and Tek-Think. She is also the principal at Women's Financial Help Desk. She spends her free time in the outdoors with her horses and dogs. She loves to travel.