On November 26, TCL Zhonghuan announced that it had signed a term sheet with its controlled subsidiary, Maxeon Solar Technologies, Ltd.
According to the announcement, TCL Zhonghuan intends to purchase 100% of the equity in SunPower Philippines Manufacturing Ltd., a wholly-owned subsidiary of Maxeon, as well as 100% of the equity and related tangible and intangible assets of Maxeon’s non-U.S. sales subsidiaries. The final consideration will be determined based on financial statements and third-party valuation reports as of August 31, 2024.
TCL Zhonghuan stated that MAXN, its controlled subsidiary, is a key layout for the company’s global business development, possessing a series of patents for IBC battery-modules, Topcon battery technology, shingled modules, as well as advantages in branding and channel distribution. To better cope with industry downturn pressures, fully leverage the comparative advantages and business synergies of both parties, further promote resource integration and optimal allocation, and help optimize the business structure of its subsidiaries, TCL Zhonghuan plans to carry out this transaction.
The company added that this transaction will benefit TCL Zhonghuan in integrating overseas manufacturing and channel resources, improving collaborative management capabilities, and driving the company’s global business development. Additionally, the transaction does not constitute a related-party transaction or major asset restructuring and requires legal or administrative regulatory approval, so there is considerable uncertainty.
