Total to acquire 60 per cent in SunPower for $1.37 billion
29 Apr 2011
French energy giant Total will acquire a 60 per cent stake in US renewable energy company SunPower, for around $1.37 billion. The two companies also announced research collaboration to advance photovoltaic technologies across multiple research and development projects.
Total will acquire the stake in a tender offer, through a wholly owned subsidiary, for up to 60 per cent of SunPower's outstanding common shares (both Class A and B), at a price of $23.25 per share.
The offer is at 46 per cent premium to the closing price of SunPower's Class A common stock and a 49 per cent premium to its Class B common stock, and values SunPower at $2.3 billion.
Under the terms of the tender offer agreement, SunPower shareholders will receive $23.25 per share in cash, subject to pro-ration in the event that more than 60 per cent of SunPower's shares are tendered.
Total expects to begin its tender offer within 10 business days. The tender offer closure is subject to a minimum of 50 per cent acceptance and clearance by US and European Union antitrust authorities, and other customary closing conditions, the two companies said.
Total will also provide SunPower with up to $1 billion of credit support over the next five years, under which, Total will offer to guarantee an amount up to $1 billion of SunPower's repayment obligations with respect to letters of credit issued over the next five years in connection its global utility power plant and large commercial installation businesses.
