REC Silicon’s plant in Moses Lake, Wash. / Courtesy of REC Silicon
REC Silicon’s minority shareholders have warned of authorized motion towards the Norwegian silicon supplies maker, with Korea’s Hanwha Group presently the biggest shareholder of the Norway-based firm.
Their newest transfer got here after a pointy decline in REC’s inventory worth earlier this 12 months within the aftermath of its abrupt announcement on the finish of final 12 months that it could droop polysilicon manufacturing at its U.S. manufacturing plant in Moses Lake, Wash., and cancel a 10-year contract with Hanwha to provide the uncooked materials for photo voltaic panels.
„Three of us will even meet with a lawyer to assessment authorized features associated to the scenario,“ a gaggle of REC’s minority shareholders wrote on-line on Jan. 26.
„We’re getting ready for all potential outcomes and are contemplating measures reminiscent of authorized motion, convening a rare basic assembly (EGM), initiating an investigation, strategic media engagement and strengthening dialogue with different shareholders,“ the group added.
The motion group was organized after the announcement of REC’s manufacturing unit shutdown dragged down its inventory worth by 50 p.c from 3.59 Norwegian krone ($0.32) to 1.79 Norwegian krone on the primary buying and selling day of the 12 months.
It was revealed later that Hanwha determined to supply polysilicon from a Malaysian plant of OCI Holdings, one other Korean photo voltaic power firm, because of the decrease high quality of REC’s merchandise.
Questioning REC’s decision-making course of, the minority shareholders have referred to as for an EGM.
Additionally they despatched a letter to REC requesting a gathering with its board earlier than the presentation of fourth-quarter earnings, which is slated for Feb. 6.
REC’s five-member board consists of two of Hanwha’s senior executives, who function the chair and the deputy chair. The Norwegian agency’s chief monetary officer and the chief technique officer, in addition to two different executives managing its U.S. operations, beforehand labored for Hanwha.
The minority shareholders have requested for the election of latest board members to symbolize their pursuits.
„We’ll demand at the least one new board member, although it appears seemingly that as many as three could also be required,“ the motion group mentioned.
REC was unavailable for touch upon this concern, whereas Hanwha has distanced itself from the Norwegian agency.
Since 2022, Hanwha Options has remained the largest shareholder of REC with a 21.33 p.c stake. Hanwha Corp., the Korean conglomerate’s holding firm, additionally owns a 12 p.c stake in REC.
Hypothesis persists that Hanwha could unload its shares in REC, though the Korean agency not too long ago offered the Norwegian agency with a $40 million mortgage to assist with the closure of its Moses Lake facility.
