Norway's REC shareholders approve company split-up

Sep 23, 2013 - The shareholders of Norwegian solar equipment maker Renewable Energy Corp (OSL:REC) approved the split-up of the company into two at an extraordinary meeting today.

REC will split its business into a solar module producer, called REC Solar ASA, and a silicon manufacturer, called REC Silicon ASA.

The two companies will operate separately and will be listed on the stock exchange.

REC offers existing shareholders non-tradable subscription rights to the new shares in REC Solar, proportional to their current stakes in the group. They will get one share in the new company for each 58 of their existing shares. The price per share amounts to NOK 20 (USD 3.39/ EUR 2.51) and the subscription period will run between October 4 and October 18.

Proceeds from the transaction are estimated at EUR 63 million (USD 85.1m). After it, the company's equity ratio will stand at around 53%.

(NOK 1.0 = USD 0.169/ EUR 0.125)

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