Trina Solar going-private plan backed by 2 out of 3 proxy advisors
Solar panels. Author: John S. Quarterman. License: Creative Commons, Attribution 2.0 Generic.
The going-private proposal for Trina Solar Ltd (NYSE:TSL) has been endorsed by two of the three leading proxy advisory firms, the Chinese photovoltaic (PV) modules maker said today.
As announced in August, an investor consortium led by Trina chairman and CEO Jifan Gao is willing to acquire and delist the company. Institutional Shareholder Services (ISS) and Egan-Jones Proxy Services have recommended that Trina Solar shareholders vote for the transaction at the meeting on December 16.
At the same time, Glass, Lewis & Co is advising Trina Solar shareholders to vote against the proposal. The solar company strongly disagrees with that recommendation, saying that it fails to adequately consider “the risks associated with operating in the current industry environment as a standalone listed company”, the lack of other compelling alternatives available, and other factors.
The USD-1.1-billion (EUR 1.02bn) going-private proposal offers USD 0.232 in cash per Trina ordinary share. The company previously said it expects the buyout to close in the first quarter of 2017.
Trina Solar was the world’s top manufacturer of crystalline PV module maker in 2015.