Leading ‘Silicon Module Super league’ (SMSL) member Trina Solar has announced that its chairman and chief executive officer, Jifan Gao has secured an investor consortium to take the company private and exit the NYSE in a US$1.1 billion transaction. The merger is currently expected to close during the first quarter of 2017.
Trina Solar appointed Citigroup Global Markets Inc., as its financial advisor and Kirkland & Ellis as its international legal counsel to handle the proposal to take the company private in January 2016, after announcing the plans December 11, 2015.
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The investor consortium that includes Fortune Solar Holdings Limited (Parent company) and Red Viburnum Company Limited (Merger subsidiary), a wholly owned subsidiary of the parent company plans to offer the right to receive US$0.232 in cash without interest in each American depositary share ‘ADS’ in Trina Solar (50 Shares), that would be cancelled in exchange for the right to receive US$11.60 in cash without interest.
The purchase represents a premium of 21.5% to the closing price of the Trina Solar’s ADSs on December 11, 2015, the last trading day prior to the original announcement to take the company private and a premium of 40.6% to the closing price of the ADSs on Friday, July 29, 2016.
The investor consortium comprised, among others, Mr. Gao, Shanghai Xingsheng Equity Investment & Management Co., Ltd., Shanghai Xingjing Investment Management Co., Ltd., Great Zhongou Asset Management (Shanghai) Co., Ltd., Liuan Xinshi Asset Management Co., Ltd. and/or their respective affiliates.
The company follows a similar move by the founder and chairman of NASDAQ listed JA Solar, although JA Solar said in its first quarter earnings call that it had no update to provide on the planned move to take the company private.
