REC signs deal on transfer of solar segment to separate entity

Oct 7, 2013 - Norway’s Renewable Energy Corp ASA (OSL:REC) said on Friday it had inked a deal for the sale of its solar activities to newly-established REC Solar ASA under the company’s previously unveiled intention to split into two.

REC is working on separating its Singapore-based solar business from the group’s silicon operations through a NOK-800-million (USD 133.5m/EUR 98.4m) share offering to existing shareholders. The group has previously noted that the operational synergies between these segments are limited.

REC will complete the transfer of the particular division to REC Solar once the latter is listed on the Oslo Stock Exchange (OSE), which is expected to happen on October 25, 2013. The separated business, with a workforce of about 1,500 people, will continue to operate its Singapore-located solar panel production facility. The new firm will have a net cash position of NOK 300 million.

REC’s remaining activities will operate under the name REC Silicon ASA and will concentrate on polysilicon production at its facilities in the US. The group intends to use the gross proceeds from the separation to reduce its net debt.

(NOK 1.0 = USD 0.167/EUR 0.123)

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