Canadian Solar, one of the world’s largest solar power manufacturers, has this week revealed that it is joining the ranks of solar module companies considering going private, following the receipt of a letter from its Chairman, President and Chief Executive Officer, Dr Shawn (Xiaohua) Qu.
Canadian Solar’s Board of Directors announced on Monday that they had received a preliminary, non-binding proposal letter from its Chairman, President and Chief Executive Officer, Dr Shawn (Xiaohua) Qu, proposing the acquisition of all outstanding common shares of the company not already owned by Qu and his wife, Ms Hanbing Zhang. Such an acquisition is the traditional means to “go private” and de-list from a company’s status as a publicly owned company.
The company follows in the footsteps of two big-name solar manufacturers who have already gone private this year, Trina Solar and JA Solar.
Trina Solar announced in March of this year that it had successfully de-listed itself in a $1.1 billion move that was 15 months in the making, following a buyout offer from its chairman and chief executive, Mr Jifan Gao in December of 2015.
JA Solar similarly delisted last month in a move worth approximately $362.1 million in cash paid by an investor consortium headed up by company founder, chairman, and CEO Baofang Jin.
Another company, ReneSola, also de-listed in October.
Canadian Solar will now form a special committee of independent and disinterested directors to consider the proposal, and the company was also quick to explain that “there can be no assurance that any definitive offer relating to the Proposed Transaction or any other transaction will be made by Dr Qu or any other person.”
Dr Qu’s going-private proposal offers $18.47 per common share, valuing the company at around $1 billion.