Recently, the old polysilicon enterprises have made the latest progress in the storm of "REC Silicon" infighting ". Plagued by legal restrictions and a cash crunch, REC Silicon's board said on July 8 that it had no realistic option but to accept Hanwha's offer.
Built in 1984, REC Silicon's Moses Lake polysilicon plant was once one of the world's largest granular silicon plants, with a capacity of 16,000 tons per year. In September 2024, 4 years after the first shutdown, REC Silicon restarted the plant with the help of Hanwha.
But just three months later (December 2024), the plant was forced to shut down again after Hanwha cancelled a 10-year, $3 billion polysilicon purchase contract due to product quality problems.
Soon after, Hanwha announced in April this year that it would acquire all outstanding shares of REC Silicon and take it private.
In response, minority shareholders of REC Silicon filed a petition in the U.S. court claiming that Hanwha Group deliberately obstructed the company's polysilicon manufacturing business in Moses Lake, Washington, USA, in order to obtain full ownership of the company. For details of
the internal strife, please click: the old polysilicon plant is caught in the "internal strife" storm! Central
European Summer Time On July 8, the last day of the offer acceptance period, REC Silicon made a number of announcements regarding its offer.
REC Silicon said in the announcement that the company's newly elected board of directors said that. Although it believed that Hanwha Group, the largest shareholder, undervalued the silicon material company by buying all the outstanding shares of REC Silicon for 2.2 Norwegian kroner per share in cash, it could not find new financing or strategic options to deal with the offer.
Hanwha has previously said that it will not provide any loans to REC Silicon until the offer is completed. The Board of REC Silicon consulted with an investment bank to evaluate alternative financing solutions. "The Board understands that the existing loans and financing of the Company (referring to REC Silicon) have covered most or all of the assets of the Company, so it is difficult to obtain additional financing through other means."
Moreover, the April 24 transaction agreement between REC Silicon and Anchor AS (the "Offeror"), a wholly owned subsidiary of Hanwha USA, limits the ability of REC Silicon's board of directors to find alternative financing and strategic options at this time. Hanwha has refused to relax the restrictions and said it reserves the right to take legal action against individual board members suspected of violating their duties. Plagued by
legal restrictions and a cash crunch, REC Silicon's board said on July 8 that it had no realistic option but to accept Hanwha's offer.
As of the expiry of the Offer, Anchor AS has received 180,498,818 shares, representing approximately 42.91% of the issued shares of REC Silicon. At the same time, two companies, Hanwha Solutions (Hanwha Solutions Corporation) and Hanwha Corporation, will no longer hold direct shares in REC Silicon.
In addition, on July 1, REC Silicon announced that the board of directors had set up a board investigation subcommittee to investigate Hanwha's termination of the company's 10-year polysilicon procurement. On the 7th of the same month, REC Silicon said in its announcement that its internal investigation had not found clear evidence that the decision to terminate the procurement contract was based on factors other than commercial considerations.
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