Soitec Exits the CPV Solar Business
France's Soitec, one of the last companies with a hope of commercializing CPV technology has abandoned its solar business. The company will "re-focus" its efforts "on its electronics business," according to the firm.
On January 16, 2015, the Board of Directors unanimously decided to immediately implement and support a strategic plan which aims to re-focus Soitec activities on its core electronics business.
Soitec has initiated efforts to realize value of solar energy business combining significant restructuring measures going forward and will assess most appropriate scenario to extract value from its solar related assets in compliance with its obligations towards all solar stakeholders.
As a consequence of the recast of the anticipated Solar Energy sales Soitec has triggered a first batch of cost cutting actions freezing or cancelling many operating charges and reducing headcount by around 100 people in the United States. Further cost cutting measures will be implemented in accordance with firm anticipated short term demand as well as appropriate restructuring measures.
By the end of December 2014, unaudited cash resources amounted to 28.4 million Euros. Following recent successful full commissioning of its Touwsrivier plant in South Africa, the Group is anticipating to collect up to 40 million Euros in the coming months.
Additionally, Soitec has signed a 2 years Standby Equity Facility (SEF) with Societe Generale. Societe Generale has committed to subscribe, upon Soitec's request, to newly issued shares in successive tranches over the next 24 months, within a global limit of 22,000,000 shares (9.8% of the share capital). Should the entire standby equity facility be drawn down, a shareholder currently owning 1% of the company's share capital would see its share ownership reduced to 0.91%.
For each tranche, the issuance price will reflect the volume-weighted average price of shares for the three trading days preceding the issue date, minus a discount of no more than 5%. This discount will enable Societe Generale to underwrite the share issuance despite potential market volatility.
The Group reiterates that its current operating loss will not be significantly reduced in H2 compared to H1. It is further anticipated that a significant impairment charge shall be recorded in H2 FY14-15 in order to reflect solar scenario outcome and restructuring measures implemented.
Strategic re-focus on core electronics business is accompanied with a change of governance consistent with the 2013 AFEP "“MEDEF Corporate Governance Code of Listed Companies. The role of Chairman of the Board and Chief Executive Officer are getting split. Paul Boudre is becoming Chief Executive Officer. Boudre was COO since June 2008 and focused in restructuring and developing the Electronic business over last years. André Jacques Auberton Hervé will remain Chairman of the Board.
