Aker Horizons — M&A Activity 2021

Nov 18, 2021

Aker Horizons and Hanwha Solutions Join Forces in REC Silicon to Explore US Solar Value Chain Expansion

Aker Horizons and Hanwha Solutions Join Forces in REC Silicon to Explore US Solar Value Chain Expansion

Aker Horizons ASA's wholly owned subsidiary Aker Horizons Holding AS ("Aker

Horizons") has today entered into an agreement with South Korea's Hanwha

Solutions Corporation ("Hanwha Solutions"), one of the leading solar PV

manufacturers in the US, and with REC Silicon ASA ("REC Silicon").

Hanwha Solutions will acquire 21,891,275 shares in REC Silicon from Aker

Horizons and will subscribe for 48,213,001 new shares in REC Silicon through a

private placement in REC Silicon. Both transactions are conditional upon each

other and will be completed simultaneously, and are done at the same share price

of NOK 20 per share.

The private placement will provide approximately NOK 964 million in proceeds to

REC Silicon, and will be implemented based on the existing authorization granted

to the board of REC Silicon. The share sale will provide proceeds to Aker

Horizons Holding AS of approximately NOK 438 million. Following the transaction,

Aker Horizons and Hanwha Solutions will each own approximately 16.67 percent of

the shares in REC Silicon.

"Aker Horizons develops industrial scale solutions to contribute towards meeting

Net Zero by 2050 or sooner," said Kristian Røkke, Chief Executive Officer of

Aker Horizons. "REC Silicon is the lowest CO2 footprint producer of polysilicon

globally, and we see further potential for positive impact through the

development of a US solar value chain. We welcome Hanwha Solutions as a

shareholder and partner in the development of REC Silicon with their extensive

capabilities and ambitions."

The transaction brings together two of the leading producers in different parts

of the solar PV value chain. Hanwha Solutions is one of the world's largest

solar PV manufacturers with a total cell manufacturing capacity of 10GW

globally. The company provides high-quality solar PV panels to the residential

market through their wholly owned brand Q CELLS, which holds a 25 percent market

share in the US[1].  The company operates one of the largest solar module

factories in the US with an annual production capacity of 1.7GW, corresponding

to 12,000 PV modules per day.

REC Silicon is a leading producer of advanced silicon materials, delivering high

-purity polysilicon and silicon gas to the solar and electronics industries

worldwide. Operating two polysilicon manufacturing facilities in the US, the

company has an annual production capacity of 20,000 MT. REC Silicon's highly

advanced and efficient FBR production process at Moses Lake uses significantly

less energy compared to the traditional process. Using hydropower-based clean

energy, REC Silicon can produce low-cost polysilicon with a low carbon

footprint.

The transactions are expected to strengthen REC Silicon's financial position and

ensure that REC Silicon has the necessary resources to reopen its FBR facility

in Moses Lake, Washington, and enable valuable investment opportunities in

Butte, Montana. Hanwha Solutions' investment represents a step towards

establishing a highly efficient, low carbon solar value chain in the US and to

ensure that REC Silicon plays an integral role in these efforts.

The Solar Energy Manufacturing for America (SEMA) Act currently being considered

in the US Congress is aimed specifically at encouraging strategic investments in

US manufacturing capabilities. This transaction clearly demonstrates the

potential to build solar manufacturing capabilities in the US quickly and

efficiently - which is the primary objective of the proposed SEMA Act. The

eventual passage of the legislation will support the parties' ambitions to

establish a comprehensive US solar value chain, from production of polysilicon

to fully assembled solar modules.

Completion of the transactions is expected to occur early in the first quarter

2022, subject to customary anti-trust filing in the US.

1. Wood Mackenzie Power & Renewables

For further information, please contact:

Ivar Simensen, Communications, Aker Horizons

Tel: +47 46402317

Email: ivar.simensen@akerhorizons.com

About Aker Horizons

Aker Horizons ASA is a planet-positive company dedicated to developing companies

within renewable energy and other technologies that reduce emissions or promote

sustainable living. The company is listed on the Oslo Stock Exchange and

majority owned by Aker ASA. Aker Horizons owns stakes in Aker Carbon Capture,

Aker Clean Hydrogen, Aker Offshore Wind and Mainstream Renewable Power.