The chairman and chief executive of Trina Solar Ltd (NYSE:TSL) and a unit of Industrial Bank Co Ltd (SHA:601166) have made a joint non-binding proposal to buy out and delist the Chinese photovoltaics (PV) maker.
CEO Jifan Gao and Shanghai Xingsheng Equity Investment & Management Co Ltd have offered to take Trina private at a price of USD 0.232 (EUR 0.212) in cash per ordinary share, or USD 11.6 in cash per American Depositary Shares (ADSs). The proposed consideration is a premium of 21.5% over the closing price of Trina's ADSs on December 11, 2015. Every ADS represents 50 ordinary shares.
In a letter to Trina’s board of directors, Gao said that the proposed going-private transaction would provide superior value to the company's stockholders. He added that the suitors intend to finance the buyout with a mix of debt and equity capital.
Trina’s board has formed a special committee consisting of two independent directors to consider the offer. There is no certainty that a final deal will be signed, it stressed.
Skadden, Arps, Slate, Meagher & Flom LLP is acting as a US legal counsel for the buyer group, while Industrial Bank will serve as its financial advisor. The latter will also arrange the needed debt financing.
(USD 1.0 = EUR 0.912)
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