REC Solar ASA  has reached an agreement with Bluestar Elkem Investment Co. Ltd. of Hong Kong, whereby Bluestar Elkem will purchase 100% of the shares in a Luxembourg company (to be established) which will own REC Solar Holdings AS and all of the assets and liabilities of REC Solar at a cash purchase price equal to NOK 108.50 per share in REC Solar. 

The transaction is not subject to any financing condition, but is subject to other customary conditions, including all required regulatory approvals. (Closing is expected no later than 16 January 2015.) The rransaction represents a premium of 22.6 % and 27.1% to the 1 and 3-month volume weighted average share price, respectively. The total cash consideration is NOK 4,340 million.

"We are pleased that we today are in position to announce the combination of the Elkem Group and REC Solar,” said Ole Enger, chairman of REC Solar. “The Board of Directors of REC Solar views the combination as a positive outcome for the company, its excellent workforce and other stakeholders, and we look forward to working with the Elkem Group to complete the transaction. The Board believes that a combination with the Elkem Group will provide a strong platform to further develop REC Solar."

Helge Aasen, the CEO of Elkem AS, concurred, adding that the Elkem Group has a strategic goal to grow its presence in the solar industry. “The ambition is to establish a leading integrated PV player,” Aasen explained. “The Elkem Group and REC Solar have developed a strong business relationship, and there is a good strategic match between the companies.” 

According to Elkem, the combined entity will have a strong basis for further development of the business by leveraging REC Solar's leading global brand, strong distribution channels and reputation for quality.