Solar's Move Higher Following SunPower (SPWR), Total SA (TOT) Deal
Tweet
Share
E-mailGet Alerts TOT Hot Sheet
Join SI Premium – FREE
Solar stocks are moving higher Friday morning, following a deal hashed out by Total SA (NYSE: TOT) and SunPower (Nasdaq: SPWR) over French solar provider Tenesol SA.
According to the earlier release, SunPower will acquire Tenesol SA for $165.4 million in cash. That will just about be offset by Total, which has agreed to buy 18.6 million SunPower shares for $8.80 each, or a gross investment of $163.7 million.
SunPower said the acquisition will positively affect its fiscal 2012 financial position.
Further, "Total and SunPower also reached new agreements that further strengthen SunPower's balance sheet and liquidity position. In addition, Total has agreed to pursue negotiations for several additional agreements with SunPower related to directly investing in SunPower's research and development, developing the first initial, full-scale, commercial concentrator power plant with the SunPower C7 Tracker, and purchasing10 MW of SunPower products for the development of projects worldwide."
Following the announcement, SunPower is up significantly, with 18.6 million shares representing a near-equal stake in SunPower's outstanding common. At $8.80, Total is paying a 50 percent premium to SunPower's closing price of $5.85 yesterday.
By our rough calculations, SunPower should go up about 9 to 10 percent Friday, to about $6.39 or $6.40.
Others moving on the news include:
According to the earlier release, SunPower will acquire Tenesol SA for $165.4 million in cash. That will just about be offset by Total, which has agreed to buy 18.6 million SunPower shares for $8.80 each, or a gross investment of $163.7 million.
SunPower said the acquisition will positively affect its fiscal 2012 financial position.
Further, "Total and SunPower also reached new agreements that further strengthen SunPower's balance sheet and liquidity position. In addition, Total has agreed to pursue negotiations for several additional agreements with SunPower related to directly investing in SunPower's research and development, developing the first initial, full-scale, commercial concentrator power plant with the SunPower C7 Tracker, and purchasing10 MW of SunPower products for the development of projects worldwide."
Following the announcement, SunPower is up significantly, with 18.6 million shares representing a near-equal stake in SunPower's outstanding common. At $8.80, Total is paying a 50 percent premium to SunPower's closing price of $5.85 yesterday.
By our rough calculations, SunPower should go up about 9 to 10 percent Friday, to about $6.39 or $6.40.
Others moving on the news include:
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bloom Energy rejects short-seller report on finances and supply chain
- Buy these 2 semi capex stocks as '27 earnings power is "underappreciated": MS
- This EU airline stock is Bernstein's Best Idea for Q3
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
