Reliance Industries sells REC Solar Norway for $22 million

New Delhi, Reliance Industries Ltd on Monday said it will sell REC Solar Norway AS to Oslo-listed Elkem ASA for around USD 22 million. REC Norway is a wholly-owned unit of REC Solar Holdings and is involved in the manufacturing of kerf-based polysilicon in the Scandinavian country.

In October 2021, a unit of Reliance acquired Norway's solar panel manufacturer at an enterprise value of USD 771 million as the Indian oil-to-retail conglomerate sought to extend its dominance into alternative energy.

"REC Solar Holdings AS, a step-down wholly-owned subsidiary of Reliance Industries Ltd (RIL), has informed that it has, on January 14, 2024, entered into a share purchase agreement with Elkem ASA for the sale of its 100 per cent equity stake in REC Solar Norway AS for an aggregate cash consideration of USD 22 million," RIL said in a stock exchange filing.

Founded in 1904, Elkem ASA is a silicon-based material provider, and listed on the Oslo Stock Exchange.

"REC Norway, a wholly-owned subsidiary of REC Solar Holdings AS, is in the business of manufacturing kerf-based polysilicon in Norway," the firm said. "RIL will continue to retain the technology and intellectual property rights pertaining to kerf-based polysilicon."

REC Norway had a turnover of Norwegian krone 1.1 billion in the calendar year 2022 and a net worth of NOK 0.3 billion as of December 31, 2022, contributing about 0.08 per cent and 0.03 per cent, respectively, of RIL's annual consolidated turnover and net worth for the financial year 2022-23, it said.

In October 2021, RIL bought REC Solar Holdings from China National Bluestar Group Co to expand in green energy markets globally, including the US, Europe, Australia and elsewhere in Asia.

The acquisition was part of company chairman Mukesh Ambani's pledge to spend USD 10 billion on green energy over three years.

REC makes solar-grade polysilicon and solar panels and modules at facilities in Norway and Singapore. RIL was to use REC's technology to manufacture metallic silicon and solar panels at its gigafactory at Jamnagar in Gujarat.

The REC Solar Norway transaction is subject to certain regulatory and other customary closing conditions and is expected to be completed by April 2024, RIL said.

"Upon completion of the sale, REC Norway will cease to be a subsidiary of the company. REC Solar Holdings AS and its subsidiaries, engaged in the business of manufacturing and sale of solar PV HJT cells and modules, will continue to be RIL's subsidiaries," it said.