TCL Zhonghuan headquarters
Image: TCL Zhonghuan
TCL Zhonghuan unveiled a plan to develop into the bulk shareholder of Singapore-based photo voltaic module producer Maxeon. The Chinese firm stated it is going to shut the deal by means of a number of monetary transactions, together with the issuance of convertible bonds and extra shares by means of personal placement.
TCL Zhonghuan stated it goals to make use of as much as $197.5 million for the acquisition, which is able to enhance its shareholding in Maxeon from 22.39% to a controlling stake of a minimum of 50.1%. Once the transaction is accomplished, Maxeon will develop into a subsidiary managed by TCL Zhonghuan, and its outcomes can be consolidated into the corporate’s monetary statements in China.
“The sequence of main investments we introduced yesterday with our strategic companion, TZE, will strengthen our stability sheet, and this recapitalization places Maxeon in a powerful monetary place and strengthens in our function as a number one participant within the renewable vitality market,” a Maxeon spokesperson stated pv journal. “Specifically, TZE dedicated to a $97.5 million convertible bond issuance adopted by a $100 million fairness funding, each topic to regulatory approvals. These investments occurred throughout a big transformation of the photo voltaic {industry} and can improve Maxeon’s potential to navigate the ensuing market challenges with confidence whereas positioning the corporate to proceed its lengthy historical past of product innovation and driving development and leverage of revenue.
In October 2023, Maxeon introduced a plan to put off 15% of its staff to handle the consequences of decrease shipments from a North American distributed technology shopper and a “slowdown of industry-wide demand” in world distributed technology markets. Maxeon CEO Bill Mulligan stated in an announcement on the time that the corporate determined to “streamline” operations, spend money on new applied sciences, and create a mixture between distributed technology and utility-scale markets as a consequence of “quickly altering market and {industry} situations. .”
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