PV Crystalox Solar chooses to return cash

UK-based firm PV Crystalox Solar Plc (LON:PVCS) is leaning towards returning a large portion of its available cash rather than pursuing acquisitions, it said on Friday.

The company, which stopped solar wafer production last year to focus on cutting glass and quartz, has been considering the two options over the past few months. Following an extensive review, it decided that returning cash is in the best interest of shareholders and expects to make a detailed proposal when it announces its preliminary results in March.

PV Crystalox noted that it is still mulling over the options of selling its restructured German business to a third party, or transferring it to the existing management. The unit is making good progress in developing new business opportunities in the cutting of non-silicon materials, it added.

The company's net cash position at the end of the first half of 2018 was EUR 39.6 million (USD 45.4m). In November, it received the final payment of EUR 14.3 million that was due under a settlement agreement with a customer who failed to purchase wafers under a long-term supply contract. That customer paid a total of EUR 28.8 million and waived its right to demand delivery of the outstanding wafers.

(EUR 1.0 = USD 1.147)

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