Total buys controlling stake in SunPower for $1.3 billion

French energy giant Total and SunPower Corp today announced the successful completion of Total's $1.3 billion all-cash bid for a 60 per cent stake in SunPower, with a majority of the shareholders of the US solar power major tendering their shares.

Total's takeover of SunPower will create a new global leader in the solar industry, the two companies said in a joint statement.

Total, which launched a friendly bid for up to 60 per cent of SunPower in April, offering to pay $23.25 a share, received 52.2 per cent of Class A common stock and 74.2 per cent of Class B common stock of SunPower.

Total has accepted for payment 30,220,701 shares of Class A common stock and 25,220,000 shares of Class B common stock of SunPower, at $23.25 per share, for a total cost of around $1.3 billion. Adjustments if any will be made after the expiration of the guaranteed delivery period on 17 June 2011, the joint statement added.

"Today marks a new stride-forward for Total in the solar power industry," said Philippe Boisseau, president, Total Gas and Power. "By combining the strengths of both groups, we have created a remarkable asset: SunPower will be the centrepiece of the solar activities of Total."

The price represented a premium of more than 44 per cent to SunPower's Class A closing share price of $16.12 on the day before the deal was announced.