TCL Zhonghuan reveals plans to amass majority stake in Maxeon – pv journal Worldwide

TCL Zhonghuan has revealed a plan to develop into a majority shareholder of Singapore-based photo voltaic module producer Maxeon. The Chinese language firm stated it could finalize the deal by a variety of monetary transactions, together with the issuance of convertible bonds and extra shares through non-public placement.

TCL Zhonghuan stated it goals to make use of as much as $197.5 million for the acquisition, which can improve its shareholding in Maxeon from 22.39% to a controlling stake of no less than 50.1%. If the transaction is accomplished, Maxeon will develop into a subsidiary managed by TCL Zhonghuan, and its outcomes shall be consolidated into the Chinese language firm’s monetary statements.

“The collection of main investments we introduced yesterday at the side of our strategic accomplice, TZE, will fortify our stability sheet, and this recapitalization locations Maxeon in a strong monetary place and reinforces our position as a number one participant within the renewable power market,” a Maxeon spokesperson instructed pv journal. “Particularly, TZE has dedicated to a $97.5 million convertible bond issuance adopted by a $100 million fairness funding, each topic to regulatory approvals.  These investments are occurring throughout a interval of serious photo voltaic {industry} volatility and can improve Maxeon’s potential to navigate the resultant market challenges with confidence whereas positioning the corporate to proceed its lengthy historical past of product innovation and drive development and elevated revenue.”

In October 2023, Maxeon introduced a plan to put off 15% of its staff to handle the impacts of decrease shipments from a distributed-generation consumer in North America and an “industry-wide demand slowdown” in international distributed-generation markets. Maxeon CEO Invoice Mulligan stated in an announcement on the time that the corporate had determined to “streamline” operations, put money into new applied sciences, and develop a combination between the distributed-generation and utility-scale markets as a consequence of “quickly altering market and {industry} situations.”