Recurrent Energy and Sharp have finalized a definitive agreement, which will see Sharp buy Recurrent Energy once the closing conditions and regulatory approvals are completed. The final closing date is expected to occur by the end of 2010, at which time Sharp will pay up to US$305 million in cash, contingent to balance sheet adjustments, in order to purchase 100% stake from Recurrent shareholders.
Mark Bachman, analyst at Auriga USA, stated, “The fact that Recurrent Energy was in-play was not a surprise, but to see Sharp as the acquirer caught us napping. This is the first major purchase of a North American PV pipeline that was not acquired by a U.S. company, and we figured that First Solar, MEMC or SunPower would have been a more likely candidate…More importantly, the purchase of Recurrent Energy is another validation of the strategy to buy versus make PV projects that started in early 2009 when First Solar took-out Optisolar…”
Recurrent will continue to operate under its given name as a subsidiary of Sharp. Arno Harris, CEO of Recurrent, will keep his title and lead the company under the direction of Toshishige Hamano, executive vice president for overseas business at Sharp. Additionally, the executive tam and employees of Recurrent will maintain their employment with the company.
Bachman added in his analysis that the value of the 2GW of pipeline projects that Sharp will acquire from Recurrent will not be known until several years after they have been completed. He concluded , “Sharp should be able to increase module shipments into the U.S. Recurrent has used several module suppliers including First Solar, Suntech and BP Solar, but given the new relationship with Sharp, we would expect the project pipeline to use a majority of Sharp modules…”