Water Street Capital Comments On Latest Update From REC Silicon Board of Directors
Water Street Capital, owning 8.26% of REC Silicon (RNWEY), has supported the Board's assessment that Hanwha Solutions Corporation's NOK 2.20 offer significantly undervalues the company's assets and intellectual property. The situation is complicated by a restrictive Transaction Agreement signed on April 24, 2025, which prevents the Board from pursuing alternative financing and strategic options.
Water Street criticizes Hanwha's behavior, particularly noting that Hanwha retracted its funding pledge after losing Board control and has threatened legal action against Board members. Water Street believes this constitutes a material breach of the Transaction Agreement under U.S. law and maintains that REC Silicon's Polysilicon and Silane gas businesses would command higher valuations if properly marketed.
Water Street Capital, che detiene l'8,26% di REC Silicon (RNWEY), ha sostenuto la valutazione del Consiglio secondo cui l'offerta di 2,20 NOK di Hanwha Solutions Corporation sottovaluta significativamente gli asset e la propriet脿 intellettuale della societ脿. La situazione 猫 resa complessa da un Accordo di Transazione restrittivo firmato il 24 aprile 2025, che impedisce al Consiglio di esplorare opzioni alternative di finanziamento e strategie.
Water Street critica il comportamento di Hanwha, evidenziando in particolare che Hanwha ha ritirato il suo impegno di finanziamento dopo aver perso il controllo del Consiglio e ha minacciato azioni legali contro i membri dello stesso. Water Street ritiene che ci貌 costituisca una violazione sostanziale dell'Accordo di Transazione secondo la legge statunitense e sostiene che i settori Polysilicon e Silane gas di REC Silicon avrebbero valutazioni pi霉 elevate se adeguatamente commercializzati.
Water Street Capital, que posee el 8,26% de REC Silicon (RNWEY), ha apoyado la evaluaci贸n del Consejo de que la oferta de 2,20 NOK de Hanwha Solutions Corporation subvalora significativamente los activos y la propiedad intelectual de la empresa. La situaci贸n se complica debido a un Acuerdo de Transacci贸n restrictivo firmado el 24 de abril de 2025, que impide al Consejo buscar financiamiento alternativo y opciones estrat茅gicas.
Water Street critica el comportamiento de Hanwha, se帽alando especialmente que Hanwha retir贸 su compromiso de financiamiento tras perder el control del Consejo y ha amenazado con acciones legales contra los miembros del mismo. Water Street considera que esto constituye un incumplimiento material del Acuerdo de Transacci贸n bajo la ley estadounidense y sostiene que los negocios de Polysilicon y gas Silane de REC Silicon tendr铆an valoraciones m谩s altas si se comercializaran adecuadamente.
鞗岉劙 鞀ろ姼毽姼 旌愴敿韯�鞚赌 REC Silicon (RNWEY)鞚� 8.26%毳� 氤挫湢頃橁碃 鞛堨溂氅�, 頃滍檾靻旊（靺橃潣 2.20 NOK 鞝滌晥鞚� 須岇偓鞚� 鞛愳偘瓿� 歆�鞝� 鞛偘甓岇潉 韥矊 鞝�韽夑皜頃滊嫟電� 鞚挫偓須岇潣 韽夑皜毳� 歆�歆�頃╇媹雼�. 靸來櫓鞚赌 2025雲� 4鞗� 24鞚检棎 觳搓舶霅� 鞝滍暅鞝侅澑 瓯半灅 瓿勳暯鞙茧 鞚疙暣 氤奠灐頃挫鞙茧┌, 鞚� 瓿勳暯鞚赌 鞚挫偓須岅皜 雽�觳� 旮堨湹 氚� 鞝勲灥鞝� 鞓奠厴鞚� 於旉惮頃橂姅 瓴冹潉 毵夑碃 鞛堨姷雼堧嫟.
鞗岉劙 鞀ろ姼毽姼電� 頃滍檾鞚� 頄夒彊鞚� 牍勴寪頃橂┌, 韸鬼瀳 頃滍檾臧� 鞚挫偓須� 韱奠牅甓岇潉 鞛冹澏� 頉� 鞛愱笀 歆�鞗� 鞎届啀鞚� 觳犿殞頃橁碃 鞚挫偓須� 甑劚鞗愲摛鞐� 雽�頃� 氩曥爜 臁办箻毳� 鞙勴槕頃� 鞝愳潉 歆�鞝來暕雼堧嫟. 鞗岉劙 鞀ろ姼毽姼電� 鞚搓矁鞚� 氙戈淡 氩曤靸� 瓯半灅 瓿勳暯鞚� 欷戨寑頃� 鞙勲皹鞚措澕瓿� 氤搓碃 鞛堨溂氅�, REC Silicon鞚� 韽措Μ鞁るΜ旖� 氚� 鞁る瀫 臧�鞀� 靷梾鞚� 鞝侅爤頌� 毵堨紑韺呺悳雼る┐ 雿� 雴掛澏� 韽夑皜毳� 氚涭潉 瓴冹澊霛缄碃 氙筷碃 鞛堨姷雼堧嫟.
Water Street Capital, d茅tenant 8,26 % de REC Silicon (RNWEY), a soutenu l'茅valuation du conseil d'administration selon laquelle l'offre de 2,20 NOK de Hanwha Solutions Corporation sous-茅value consid茅rablement les actifs et la propri茅t茅 intellectuelle de la soci茅t茅. La situation est compliqu茅e par un accord de transaction restrictif sign茅 le 24 avril 2025, qui emp锚che le conseil de rechercher des options de financement et strat茅giques alternatives.
Water Street critique le comportement de Hanwha, notant en particulier que Hanwha a retir茅 son engagement de financement apr猫s avoir perdu le contr么le du conseil et a menac茅 d'engager des poursuites judiciaires contre les membres du conseil. Water Street estime que cela constitue une violation substantielle de l'accord de transaction selon la loi am茅ricaine et maintient que les activit茅s de polysilicium et de gaz silane de REC Silicon obtiendraient des valorisations plus 茅lev茅es si elles 茅taient correctement commercialis茅es.
Water Street Capital, das 8,26 % von REC Silicon (RNWEY) besitzt, unterst眉tzt die Einsch盲tzung des Vorstands, dass das Angebot von Hanwha Solutions Corporation 眉ber 2,20 NOK die Verm枚genswerte und das geistige Eigentum des Unternehmens deutlich unterbewertet. Die Situation wird durch eine restriktive Transaktionsvereinbarung vom 24. April 2025 erschwert, die es dem Vorstand untersagt, alternative Finanzierungs- und Strategieoptionen zu verfolgen.
Water Street kritisiert das Verhalten von Hanwha und weist insbesondere darauf hin, dass Hanwha seine Finanzierungszusage zur眉ckgezogen hat, nachdem es die Kontrolle 眉ber den Vorstand verloren hatte, und rechtliche Schritte gegen Vorstandsmitglieder angedroht hat. Water Street sieht darin eine wesentliche Vertragsverletzung der Transaktionsvereinbarung nach US-Recht und ist der Ansicht, dass die Polysilizium- und Silangas-Gesch盲fte von REC Silicon bei angemessener Vermarktung h枚here Bewertungen erzielen w眉rden.
- Board confirms NOK 2.20 offer undervalues company assets and IP
- Water Street Capital maintains strong 8.26% ownership position
- New Board elected by majority of shareholders is working to maximize value
- Transaction Agreement restricts Board's ability to pursue alternative financing
- Hanwha retracted funding pledge after losing Board control
- Hanwha threatens legal action against individual board members
- Company faces potential financing challenges
Board Confirms Hanwha's
Water Street Condemns Behavior of Hanwha Which is Preventing REC Silicon from Pursuing Alternative Financing and Strategic Options
"Yesterday's announcement by the Board of REC Silicon, elected by the majority of shareholders at the Company's recent Annual General Meeting, confirms what Water Street has believed since the release of its shareholder letter on May 23, 2025: Hanwha Solutions Corporation's ("Hanwha")
The Board clearly states that 'The Transaction Agreement entered into on 24 April 2025 between the Company and Anchor, under Norwegian statutory law, further restricts the Board's ability to pursue alternative financing and strategic options in the current situation. Hanwha has not taken any steps to release the Board from these restrictions, but instead approached the Board and reserved the right to initiate legal action against each individual board member for failure to comply with its alleged duties.'
We find it difficult for a board to fulfill its duty to maximize shareholder value when threatened by the very shareholder responsible for placing the company into this perilous situation. That same shareholder agreed to fund the Company in the TA, only to retract that pledge when it lost control of the Board. Water Street believes that this act is a material breach of the TA under
Given the opportunity to bring the assets of REC Silicon to market, Water Street remains confident that the proper value of the Company's Polysilicon and Silane gas businesses will be ascribed.聽
We commend the current Board members for their efforts in light of the burdensome restrictions put in place prior to their recent election."
Media Contact
Jonathan Gasthalter/Brandon Lin
Gasthalter & Co.
+1 (212) 257-4170
[email protected]
View original content to download multimedia:
SOURCE Water Street Capital, Inc.
FAQ
What is Hanwha's offer price for REC Silicon (RNWEY)?
How much of REC Silicon (RNWEY) does Water Street Capital own?
What restrictions does the Transaction Agreement place on REC Silicon's Board?
What actions has Hanwha taken regarding REC Silicon's Board?
When was the Transaction Agreement between REC Silicon and Hanwha signed?
