SANDVIKA, Norway, July 18, 2013 /CNW/ - REC (Renewable Energy
Corporation ASA), a leading global provider of solar electricity
solutions, announces that it will divide the company into two entities,
launching the Silicon and Solar divisions as independent, listed
companies. Both companies will be industry leaders in their fields and
through the planned financial transaction REC will ensure a strong
financial base which will provide a competitive advantage and a solid
fundament for both companies going forward.
(Logo: http://photos.prnewswire.com/prnh/20130211/594514 )
According to Ole Enger, CEO & President of REC, dividing the company
along the segment lines will place the two new entities in favorable
positions to capture future growth.
"Solar has become a highly competitive source of energy and we strongly
believe the solar industry will experience significant growth over the
coming years. We recognize that it will be increasingly demanding to
grow and maintain a leading position with a vertically integrated
business model. By launching a pure play solar company and a pure play
silicon company, both companies will be in a favorable position for
attracting capital, and well equipped to streamline the market approach
and stay in the forefront in terms of technology development," says Ole Enger.
Launching the separate entities will be done through a financial
transaction where REC offers 100 percent of the shares in REC Solar to
the existing REC shareholders. In the transaction, REC Solar is valued
at NOK 800 million (EUR 102 million) and the offering is fully
underwritten by the largest shareholders of REC.
REC Solar will be provided with a net cash position of NOK 300 million
(EUR 38 million) and apply for a listing at the Oslo Stock Exchange.
With an equity ratio of 67 percent, REC Solar will be uniquely
positioned as one of the few debt free solar panel suppliers in the
industry. REC ASA, will further strengthen its balance sheet through
receiving proceeds of NOK 500 million (EUR 63 million) from the
transaction. After the transaction, REC ASA will hold net debt of about
NOK 1.7 billion (EUR 216 million) and with have an equity ratio of
about 53 percent. The transaction is pending approval by the REC
shareholders through an Extraordinary General Meeting and by the REC
The announcement to launch the new solar and silicon companies coincides
with REC releasing its second quarter results marked by increased
demand, higher selling prices and overall improved earnings for the
company. Revenues from the quarter ended at NOK 1,544 million (EUR 203
million), up 21 percent from the previous quarter. EBITDA was NOK 152
million (EUR 20 million) in the second quarter, up from NOK 46 million
(EUR 6 million) in the previous quarter. EBITDA for REC Solar was NOK
75 million (EUR 10 million) and for REC Silicon NOK 106 million (EUR 14
Further price increase on polysilicon is expected over the next quarter,
and strong solar panel demand growth from Asia means the outlook for
the industry is positive.
For REC's large network of close, long-term partners and wide range of
stakeholders, the move to separate the Silicon and the Solar businesses
will not impact the interaction with REC, as the two business segments
both have complete separate organizational set-ups, including
operations, R&D, sales & marketing. The REC brand and trademark will in
the continuation be owned by the new REC Solar company, headquartered
in Singapore under CEO, Øyvind Hasaas, while the parent company and the
associated silicon business will be rebranded in due time.
"With these new entities, we are able to launch two independent and
strong companies in an industry which is rapidly maturing. The current
senior management of the solar and silicon segments will head up the
new companies after a transition period. There are no other plans to
change locations or alter the number of staff in the two new
organizations, as maintaining the high competence level and strong
global market position is of utmost importance to us, underlines Ole Enger.
The current corporate headquarters in Sandvika - Norway, will after a
transition period will be downsized significantly, with corporate
functions and roles transferred to the new head offices in Singapore
for the solar business and the US for the silicon business.
More information is available here: http://www.recgroup.com/offering2013
Follow REC on Twitter: https://twitter.com/recgroupmedia
To see more of what REC can offer, visit http://www.recgroup.com
SOURCE: REC (Renewable Energy Corporation ASA)
For further information:
Public Relations Manager, REC Solar Sales and Marketing GmbH
Leopoldstr. 175, 80804 Munich, Germany
Phone: +49-89-442-3859 70