REC Silicon running out of road on takeover bid by Hanwha

Facebook
Twitter
LinkedIn
Reddit
Email
The offer period for Hanwha’s proposed share buyout of REC Silicon ends tomorrow, 8 July. Image: REC Silicon

The board of Norwegian silicon producer REC Silicon is close to accepting a buyout offer by its largest shareholder, Hanwha Group, as it runs out of options to escape its financially precarious situation.

When the offer was first made in April, it was described by minority shareholders as “lowball”, but in a statement today the REC Silicon board said it was unable to recommend any alternatives to the Hanwha offer, which is due to run out tomorrow, 8 July.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Hanwha’s April offer proposed buying all of REC Silicon’s outstanding shares at NOK2.2 (US$0.21) per share through a newly established company called Anchor AS. Hanwha is currently REC Silicon’s largest shareholder with around a one-third holding.

The buyout offer followed the termination of a silicon supply deal earlier this year between REC Silicon and Hanwha’s subsidiary, the module manufacturer QCells, due to concerns over the quality of REC’s product. This prompted REC Silicon to abandon operations at its Moses Lake facility in the US and has left the company in a financially precarious position, reliant on loans from Hanwha.

But Hanwha has faced pushback from a group of minority shareholders in REC Silicon led by the hedge fund Water Street Capital, who questioned its motivations in cancelling the polysilicon supply deal and have subsequently resisted the buyout offer.

In a development last month, the group succeeded in wresting control of the process when it voted in favour of an investigation into the termination of the supply deal. The REC board was also reformed, with a number of new appointees not affiliated with Hanwha winning seats, including the appointment of WS Capital’s John Adams as chair.

But in a statement from the REC Silicon board today, it appears efforts to resist Hanwha’s takeover bid are faltering.  

The statement highlighted the ongoing financial difficulties REC Silicon is facing due to Hanwha’s refusal to provide the company with any further loans unless the offer is completed:

“The Board has taken steps to assess the current financial situation of the Company and has confirmed that the Company is in need of additional financing. As part of this process, the Board has held discussions with an investment bank to assess alternative financing solutions given that Hanwha has declared that it will not provide any further loans to the Company. To the Board’s understanding, existing loans and financing to the Company have effectively encumbered most or all of the Company’s assets, consequently making alternative avenues of additional financing difficult.”

In the statement, REC maintained its position that the Hanwha offer was too low but said it had been unable to negotiate a higher offer. As a result, REC Silicon said it was unable to recommend any alternatives to Hanwha’s offer.

“Based on the above, including the Company’s critical financial situation with no realistic and available financing alternatives to the continued financing from Hanwha, limited time available, and legal constraints on the Board’s ability to pursue alternative financing and strategic alternatives, the Board is unable to recommend any alternatives to the Offer. As part of this assessment, the Board assumes that Hanwha will honor its previous statements that it intends to financially support the Company’s operations.”

Adams made no further comment on the situation when contacted by PV Tech.

7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

July 25, 2025
The US state of New York expects to install 35GW of solar PV and 9.4GW of battery energy storage system (BESS) by 2040.
July 25, 2025
VDE Americas has verified the successful deployment of the hail mitigation function of GameChange Solar’s Genius trackers.
July 25, 2025
According to a report from the International Renewable Energy Agency (IRENA), the global levelised cost of electricity (LCOE) for solar PV reached US$0.043/kWh in 2024.
July 25, 2025
Nautilus Solar Energy has entered a US$275 million tax equity partnership with Greenprint Capital to expand its US community solar portfolio.
July 24, 2025
Spanish energy utility giant Iberdrola has recorded over €3.5 billion in net profits in the first half of 2025 as it continues to expand investments in grid networks and high-value markets.
July 23, 2025
Utility giant Engie North America has acquired a portfolio of multiple solar projects from solar energy developer Prospect14.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK