PVTIME – Norway’s Asker and Bærum District Court has dismissed a request from some REC Silicon shareholders for an investigation into the termination of the firm’s 10-year, $3 billion polysilicon supply contract with Hanwha. This decision comes as Hanwha progresses with its takeover of the silicon producer.
The dispute began in December 2024, when Hanwha, already a REC Silicon shareholder, unilaterally terminated the supply deal, citing product quality issues. This forced REC Silicon’s US-based Moses Lake plant to stop operations just three months after restarting.
In April 2025, Hanwha announced plans to take REC Silicon private by buying all its outstanding shares at NOK 2.2 (approximately USD 0.21) per share. However, the bid faced strong opposition from REC Silicon’s second-largest shareholder, Water Street Capital, Inc., who alleged that Hanwha had made misleading statements and concealed actions that had disrupted the Moses Lake plant, including laying off experienced staff, changing production processes, and causing product quality test failures in order to justify ending the contract. Water Street also claimed that Hanwha had used the December factory shutdown and the subsequent drop in the share price to launch the low-cost takeover.
Ahead of REC Silicon’s annual general meeting, Water Street partnered with a civil group of minority shareholders to push through a boardroom reshuffle, bringing in Norwegian businessman Jens Ulltveit-Moe as the new chair.
REC Silicon’s board later faced cash shortages and legal constraints. On 8 July, the company stated that accepting Hanwha’s offer was its only realistic option, as Hanwha had refused to provide further loans before the tender’s completion. Consultation with an investment bank confirmed that no alternative financing was possible, as existing loans covered most assets.
As of 4 September, Hanwha held a 60.19% stake, making it REC Silicon’s undisputed majority shareholder. The costly advanced capacity of the Moses Lake plant could not withstand the pressures of the takeover.
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