ReneSola Ltd, a leading fully integrated solar project developer and provider of energy-efficient products, announced that its board of directors (the "Board") has received a preliminary non-binding proposal ("Proposal"), dated June 13, 2017, from Mr. Xianshou Li, the Company's Chairman and Chief Executive Officer ("Mr. Li"), to acquire the Company's manufacturing business (including polysilicon, solar wafer and solar module manufacturing) and LED distribution business (together, the "Acquired Businesses") and assume related indebtedness. The Proposal estimates the value of the Acquired Businesses, net of assumed indebtedness, to be approximately negative US$81 million, and contemplates that in exchange for, among other things, the assumption by Mr. Li of such indebtedness, the Company would issue additional American depositary shares (each representing 10 shares of the Company, "ADS") to Mr. Li at US$4.50 per ADS. If the transactions contemplated by the Proposal are consummated, the Company's remaining businesses would be focused primarily onsolar project development.
The Board has formed a special committee consisting of Mr. Martin Bloom, Mr. Tan Wee Seng, Ms. Julia Xu and Mr. Weiguo Zhou, each an independent director, to consider the Proposal and other alternatives available to the Company, and has granted the special committee the authority to consider, review, evaluate and, if appropriate, negotiate a strategic transaction on behalf of the Company, in order to maximize shareholder value. The special committee will conduct this process with the assistance of financial advisor and legal counsel.
The Board cautions the Company's shareholders and others considering trading the Company's securities that the Board has just received the Proposal and has not had an opportunity to carefully review and evaluate the Proposal or make any decision with respect to the Company's response to the Proposal. There can be no assurance that any definitive offer will be made, that any definitive agreement will be executed relating to the proposed transaction or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
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