Chinese renewables developer ReneSola Power has entered into a securities repurchase agreement with ReneSola Singapore, which is one of its major shareholders, to repurchase shares from the latter valued at $42m.
The move is part of ReneSola’s long term strategy to be a “leading” solar developer.
As part of this privately negotiated transaction. ReneSola Singapore will be subject to a 90-day lock-up restriction with respect to its remaining share ownership of ReneSola and other customary covenants.
In connection with, and effective upon, the closing of the repurchase transaction, the currently effective investor rights agreement dated as of 2 October 2019 by and among the Company, Xianshou Li, ReneSola Singapore, Shah Capital and certain other parties named therein will be terminated.
ReneSola will enter into an amended and restated investor rights agreement separately with Shah Capital.
ReneSola Power chief executive Yumin Liu said: “This transaction is an important step in the multi-year transformation of our Company into a leading solar project developer.
“We are especially encouraged that Shah Capital has increased their already large commitment to the Company. We appreciate their support and vote of confidence.”