SunPower and Total have entered into a broad strategic relationship under which Total Group will launch a friendly tender offer through a wholly owned subsidiary for up to 60% of SunPower's outstanding Class A common shares and 60% of SunPower's outstanding Class B common shares at a price of $23.25/share for each class.
In addition, Total will provide SunPower with up to $1 billion of credit support over the next five years. Following closing of the transaction, which has been approved by the boards of both companies, SunPower will continue to operate with its current management team.
SunPower and Total have also entered into an affiliation agreement under which Total will nominate a majority of directors to SunPower's board of directors, which will be expanded to 11 members following the closing. This agreement also includes conditions on Total's ability to purchase additional shares of SunPower, the companies note.
Additionally, the companies have entered into a research and collaboration agreement under which the companies will focus on advancing photovoltaic technologies across multiple research and development projects.
‘Total's commitment and global presence will help accelerate our growth and solidify our position in the increasingly competitive solar sector,’ says Tom Werner, SunPower's CEO. ‘With Total's $1 billion credit support agreement, solar research and development investments and the other resources available through its global network, we have taken the next step in positioning our business for continued growth and long-term success.’
‘We evaluated multiple solar investments for more than two years and concluded that SunPower is the right partner based on its people, world-leading technology and cost road map, vertical integration strategy and downstream footprint,’ says Philippe Boisseau, president of Total's gas and power division.