August 3 (Solar) – Hanwha Solar Holdings Co Ltd, a unit of Hanwha Chemical Corp (KRX:009830) has launched a non-binding offer to buy out solar cell and module maker Hanwha Q Cells Co Ltd (NASDAQ:HQCL) in a going-private transaction.
South Korea-based Hanwha Q Cells announced on Thursday it has received a preliminary non-binding proposal letter from Hanwha Solar to acquire the shares it does not already own in the solar product manufacturer. The offered price is USD 9 (EUR 7.8) per American Depositary Share (ADS), or USD 0.18 per ordinary share, representing a premium of around 35.7% to the closing price of Hanwha Q Cell’s stock on August 1.
At present, Hanwha Solar owns about 94% in the PV products maker.
The buyer said in its letter, published by Hanwha Q Cells, that it intends to carry out the potential transaction in the form of a short-form statutory merger and finance it with cash or a loan from its parent Hanwha Chemical. It has hired Citigroup Global Markets Korea Securities Ltd as financial advisor, while legal counsel will be provided by Cleary Gottlieb Steen & Hamilton LLP and Walkers.
Hanwha Q Cells’ board will form a special committee of independent directors to consider the offer. The South Korean firm noted that there is no assurance that a definitive proposal will follow or an agreement will be executed.
Just last month Chinese solar power products maker JA Solar Holdings Co Ltd went private after its chairman and CEO completed the buyout of the company.
(USD 1.0 = EUR 0.862)