REC Group Raises NOK4.52 Billion In Oversubscribed Share Issue
July 14 2009 - 3:56AM
Dow Jones News
Integrated solar company Renewable Energy Corp. (REC.OS) Tuesday
said it has raised 4.52 billion Norwegian kroner ($697 million)
before transaction costs in a significantly oversubscribed share
issue aimed at bolstering its financial flexibility.
The company offered 170.45 million new shares at NOK26.50 for
which it received subscriptions for around 269 million shares,
making it oversubscribed by almost 60%.
REC has been hit in recent months by weak demand for solar
products, which has reduced prices for solar modules, in turn
affecting supply and demand balances and prices further up its
value chain. It has already reduced production and made short-term
layoffs in its wafer and solar units, but has said it remains
upbeat about the longer-term prospects in the poly-voltaic
industry.
"Allocation of shares to the subscribers is expected to be
resolved by the board of directors of REC on or about July 17," REC
said in a statement, with the final result due to be published
through Oslo Boers information system the same day, it added.
Payment for the shares is due July 21.
REC said the share capital will be registered on around July 23
and new shares will be delivered to subscribers on or about July
24.
After the rights issue, the company's share capital will total
664.77 million shares.
DnB NOR Markets acted as global coordinator and joint
bookrunner, and ABN Amro, BNP Paribas and Nordea Markets were joint
lead managers and joint bookrunners.
At 0701 GMT, Rec traded down NOK1.08, or 2.4%, at NOK43.50,
while Oslo's OSEBX index traded up 0.4%.
Company Web site: www.recgroup.com
-By Elizabeth Adams, Dow Jones Newswires; +44 (0) 7789 070 028;
elizabeth.adams@dowjones.com