ReneSola Ltd today announced that its major shareholder, Shah Capital Opportunity Fund LP, has tentatively agreed to terms for the purchase of newly issued shares. The term sheet contemplates Shah purchasing 100,000,000 ordinary shares at a price of US$0.11 per share, for a total consideration of US$11 million.
The purchase price is equivalent to US$1.10 per ADS, representing an approximately 12% premium based on the average closing price in the last 30 trading days. As a reminder, the Company's American Depositary Shares each represent 10 ordinary shares.
Closing of the transaction will be contingent on customary closing conditions. For a period of 180 days following the closing of the proposed transactions, any shares acquired in the proposed transactions (or ADSs representing such shares) should not be allowed to be transferred to any person other than Shah's affiliates without the Company's written consent.