Reliance Industries’ REC Solar Holdings Divests REC Norway Stake to Elkem ASA for USD 22 Million

In a significant development, REC Solar Holdings AS, a wholly owned subsidiary of Reliance Industries Limited (RIL), has entered into a Share Purchase Agreement (SPA) with Elkem ASA. The agreement, finalized on January 14, 2024, involves the sale of REC Solar Holdings AS’s entire 100% equity stake in REC Solar Norway AS (REC Norway) to Elkem ASA for a notable sum of USD 22 Million.

Elkem ASA, a prominent silicon-based material provider listed on the Oslo Stock Exchange, boasts approximately NOK 45.9 billion in sales for the calendar year 2022. Founded in January 1904, Elkem ASA operates independently and is not affiliated with the Promoter, Promoter Group, or any of RIL’s group companies. REC Norway, specializing in the production of kerf-based Polysilicon in Norway, is slated for divestment. Despite the sale, RIL will retain ownership of the technology and intellectual property rights associated with kerf-based Polysilicon.

REC Norway reported a turnover of around NOK 1.1 billion in CY2022, contributing approximately 0.08% to the annual consolidated turnover and a net worth of about NOK 0.3 billion as of December 31, 2022, constituting approximately 0.03% of the Company’s net worth for the financial year 2022-23.

The transaction is currently pending fulfillment of regulatory and customary closing conditions and is anticipated to conclude by April 2024. Following the sale’s completion, REC Norway will no longer operate as a subsidiary of RIL. Meanwhile, REC Solar Holdings AS and its subsidiaries, actively engaged in the manufacturing and sale of Solar PV HJT cells and modules, will persist as subsidiaries within the Reliance Industries Limited corporate framework.