$42 Million! TCL Zhonghuan to Acquire Ordinary Shares of Maxeon Solar

PVTIME – TCL Zhonghuan Renewable Energy Technology Co. Ltd. (TCL Zhonghuan)(002129.SZ), a leading PV silicon wafer company formed when electronics manufacturer TCL acquired semiconductor manufacturer Tianjin Zhonghuan in a 2020 acquisition, announced that it intends to purchase $42.0 million of common shares of Maxeon Solar Technologies, Ltd. (Maxeon Solar) (NASDAQ:MAXN) in a private placement exempt from the registration requirements of the Securities Act of 1933 at the same price as the public offering.

Currently, Zhonghuan Singapore Investment and Development PTE. Ltd. (Zhonghuan Singapore), a wholly owned subsidiary of TCL Zhonghuan, owns approximately 23.7% of Maxeon Solar’s outstanding common stock. And TCL Zhonghaun plans to acquire 1.5 million shares of Maxeon Solar through a capital increase of up to $42 million for Zhonghuan Singapore, which will not materially dilute its current equity ownership or change its control of Maxeon Solar.

The total public offering of common shares to be sold by Maxeon Solar is 7.49 million shares, including 5.62 million shares offered by Maxeon Solar and 1.87 million shares offered by an affiliate of TotalEnergies, at a price of $28 per share.

The companies expect to use the net proceeds from the offering and the TCL Zhonghuan’s private placement for capital expenditures to add additional manufacturing capacity for Maxeon 7 products and for general corporate purposes. In the meantime, TCL Zhonghuan and Maxeon Solar will continue to exchange information on solar PV technology and marketing to promote their products in both residential and utility scenarios worldwide.

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