TCL Zhonghuan has revealed a plan to become a majority shareholder of Singapore-based solar module manufacturer Maxeon. The Chinese company said it would finalize the deal through a number of financial transactions, including the issuance of convertible bonds and additional shares via private placement.
TCL Zhonghuan said it aims to use up to $197.5 million for the acquisition, which will increase its shareholding in Maxeon from 22.39% to a controlling stake of at least 50.1%. If the transaction is completed, Maxeon will become a subsidiary controlled by TCL Zhonghuan, and its results will be consolidated into the Chinese company’s financial statements.
“The series of major investments we announced yesterday in conjunction with our strategic partner, TZE, will fortify our balance sheet, and this recapitalization places Maxeon in a solid financial position and reinforces our role as a leading participant in the renewable energy market,” a Maxeon spokesperson told pv magazine. “Specifically, TZE has committed to a $97.5 million convertible bond issuance followed by a $100 million equity investment, both subject to regulatory approvals. These investments are occurring during a period of significant solar industry volatility and will enhance Maxeon’s ability to navigate the resultant market challenges with confidence while positioning the company to continue its long history of product innovation and drive growth and increased profit.”
In October 2023, Maxeon announced a plan to lay off 15% of its employees to manage the impacts of lower shipments from a distributed-generation client in North America and an “industry-wide demand slowdown” in global distributed-generation markets. Maxeon CEO Bill Mulligan said in a statement at the time that the company had decided to “streamline” operations, invest in new technologies, and develop a mix between the distributed-generation and utility-scale markets due to “rapidly changing market and industry conditions.”
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