Solar panel maker SunPower Corp. (SPWR: Quote) Friday agreed to buy Tenesol SA, a wholly-owned subsidiary of Total SA, for $165.4 million in cash. In connection with the acquisition, Total has agreed to increase its stake in SunPower to 66 percent. Following the news, SunPower shares rose over ten percent on the Nasdaq.
Tenesol, a global solar panel provider based in La Tour de Salvagny, France, has operations in 18 countries with manufacturing facilities in France and South Africa. It had generated revenues of 240 million euros in 2010, and currently expects revenues of 200 million euros in 2011.
SunPower expects the acquisition to have a positive impact to its financial results in 2012.
Concurrent with closing of the acquisition, Total has agreed to buy 18.6 million SunPower common shares in a private placement at $8.80 per share, a 50 percent premium to December 22, 2011 closing price. After the deal, Total will own about 66 percent of SunPower's common shares.
SunPower Chief Executive Tom Werner said, "Our acquisition of Tenesol is another step toward differentiating ourselves in the competitive solar market, further expanding our downstream presence and benefiting from the strong backing of Total."
SPWR is currently trading at $6.47, up $0.62 or 10.60%, on a volume of 2.2 million shares, above the three-month average volume of 0.8 million.
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by RTT Staff Writer
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