TCL Zhonghuan unveils plans to acquire a majority stake in Maxeon – SPE

TCL Zhonghuan has unveiled a plan to become the majority shareholder of Singapore-based solar panel maker Maxeon. The Chinese company said it would complete the deal through a number of financial transactions, including the issuance of convertible bonds and additional shares through a private placement.

TCL Zhonghuan said it will use up to $197.5 million for the acquisition, which will increase its stake in Maxeon from 22.39% to a controlling stake of at least 50.1%. Once the transaction is completed, Maxeon will become a subsidiary controlled by TCL Zhonghuan, and its results will be consolidated in the Chinese company’s annual accounts.

“The series of major investments we announced yesterday in collaboration with our strategic partner TZE will strengthen our balance sheet, and this recapitalization puts Maxeon in a solid financial position and strengthens our role as a leading participant in the renewable energy market,” said a spokesman. This is what a Maxeon spokesperson said pv magazine. “Specifically, TZE has committed to issuing a $97.5 million convertible bond followed by a $100 million equity investment, both subject to regulatory approval. These investments occur during a period of significant volatility in the solar industry and will enhance Maxeon’s ability to confidently address resulting market challenges, while at the same time positioning the company to continue its long history of product innovation and stimulate growth and higher profits.”

In October 2023, Maxeon announced a plan to lay off 15% of its employees to offset the impact of lower shipments from a distributed generation customer in North America and an “industry-wide demand slowdown” in global distributed generation markets. Maxeon CEO Bill Mulligan said in a statement at the time that the company had decided to “streamline” operations, invest in new technologies and develop a mix between the distributed generation and utility markets due to “rapidly changing market and industry conditions ‘. .”