November 5 (Renewables Now) - The offer by Canadian Solar Inc’s (NASDAQ:CSIQ) chairman, president and chief executive Shawn Qu to take the company private has fallen through, it was announced today, although he remains interested in such a deal.
The photovoltaic (PV) products manufacturer and solar installer received in December 2017 a non-binding proposal from its CEO to buy out and delist the company. He offered to pay USD 18.47 (EUR 16.2) in cash for every common share not already owned by him and his wife, Hanbing Zhang.
Canadian Solar said today the special committee formed to review the bid has recommended that the board stops its consideration of the deal due to the time that has passed since it was proposed, the changes in the solar industry during that time and uncertainty around Qu's ability to secure the needed financing.
The special committee also advised the board not to review any future "going private" offer by Qu, unless there is evidence that the proposed transaction is fully financed.
After being informed of these recommendations, Qu has agreed to withdraw his offer, but remains interested in acquiring the company and may continue to seek financing and make another offer, according to the announcement.
The committee has also recommended that the board conducts a review of other strategic alternatives available to the company independent of Qu’s bid or any future "going private" transaction.
Canadian Solar said in September it was still assessing the go-private proposal from its chief executive and that due diligence was to be completed by the end of that month.
(USD 1 = EUR 0.880)