Moses Lake, Washington USA -- May 30, 2023: REC Silicon Pte. Ltd, a fully
owned subsidiary of REC Silicon ASA ("REC Silicon"), has offered its 15%
equity interest in the Shaanxi Non-Ferrous Tian Hong REC Silicon Materials
Co., Ltd joint venture ("Yulin JV"), as part of a public bidding process in
connection with the Yulin JV's capital raise.
According to the regulations applicable to state owned enterprises in China, a
valuation must be determined prior to the commencement of the bidding process,
which valuation will be used to determine a price floor. The value of the
Yulin JV was determined by a third-party appraiser to be approximately RMB 6.8
billion, implying gross proceeds before transaction costs of approximately RMB
1 billion for REC Silicon's 15% share if the bidding process is successful.
Proceeds from a potential transaction will strengthen REC Silicon's financial
capacity. The transaction is expected to generate a non-recurring gain which
should be recognized and available to REC Silicon in the second half of 2023.
"As we have stated in our past quarterly results presentations, this matter is
one we would resolve before the end of the year in cooperation with our Yulin
JV partner. This transfer is in line with our long-term strategy, focusing on
development of a solar value chain in the US and investments in our gases
business to support the growth of the Semiconductor industry and nascent
Silicon Anode material industry. It provides us with significant additional
funding resources and will free up the capacity of management to fully focus
on executing on the remaining foundational items required to deliver on our
strategy for long term value creation, centered on further development of our
production assets in Moses Lake, Butte and additional future opportunities",
says Kurt Levens, CEO of REC Silicon.
The Yulin joint venture was created by REC Silicon and Shaanxi Non-Ferrous
Tian Hong New Energy Co in 2014 to develop a greenfield production facility
for silane gas, solar and electronic grade polysilicon, utilizing REC
Silicon's fluidized bed reactor (FBR) technology.
For additional information, please contact
Jack Yun
CFO, REC Silicon
jack.yun@recsilicon.com
Nils O. Kjerstad
IR contact, REC Silicon
+47 9135 6659
nils.kjerstad@recsilicon.com
About REC Silicon
REC Silicon is a leading producer of advanced silicon materials, delivering
high-purity polysilicon and silicon gas to the solar and electronics
industries worldwide. We combine over 30 years of experience and proprietary
technology with the needs of our customers, with annual production capacity of
more than 20,000 MT of polysilicon from our two US-based manufacturing plants.
Listed on the Oslo Stock Exchange (ticker: RECSI), the Company is
headquartered in Lysaker, Norway.
For more information, go to: www.recsilicon.com