Sharp originally paid $305 million for Recurrent Energy in 2010. The sale of Recurrent to Canadian Solar will be completed in March.
Following the transaction, Canadian Solar’s total solar project pipeline will increase from roughly 4.0 GW to 8.5 GW, and its late-stage project pipeline will increase by 1.0 GW to 2.4 GW.
Recurrent Energy has 1.0 GW in its late-stage pipeline, which is one of the largest utility-scale project portfolios, scheduled to be built prior to the investment tax credit expiration in 2016. It also represents an estimated revenue opportunity of at least $2.3 billion for Canadian Solar under a build-and-sell business model.
Recurrent Energy was founded in 2006 and has developed and sold over 520 MW of solar projects. The company has a project pipeline of 3.3 GW and 1.1 GW in signed contracts.
ALSO READ: Likely Solar Winners Under New Obama Budget
This transaction would further solidify and expand Canadian Solar’s position as a leading solar energy developer, with a globally diversified project pipeline in low risk geographies.
Dr. Shawn Qu, chairman and CEO of Canadian Solar, said:
By combining Canadian Solar’s global reach and experience with Recurrent’s proven solar energy development track record in the US and Canada, we are significantly expanding the scale of our solar energy development platform. At the same time, this transaction broadens our strategic options to extend our business model from development and construction into potential ownership and operation of solar power plants as we work to create additional value for our shareholders.
Shares were up 24% at $26.53 in the last two hours of Tuesday’s trading session. The stock has a consensus analyst price target of $42.46 and a 52-week trading range of $18.68 to $44.50.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
