Canadian Solar said on Monday its chief executive officer Shawn Qu has withdrawn an offer to take the solar module maker private after a special committee set up by the board recommended rejecting his bid.
The special committee has asked the board to cease review of any future going-private deal proposed by Mr. Qu unless its board receives “reasonable evidence” that the transaction is fully financed, the company said in a statement. Mr. Qu, the company’s largest shareholder, made an offer to buy the company for $18.47 per share at a premium of 7.1 per cent in December 2017.
Mr. Qu and his wife Hanbing Zhang own about 23.5 per cent of the company’s shares.
The committee advised against the proposal in the light of “significant changes” in the solar industry since the announcement of the offer and Mr. Qu’s ability to make a fully-financed bid, the company said.
Since Mr. Qu’s offer, Canadian Solar’s shares have dropped 18 per cent, coming under pressure from a tariff war between Beijing and Washington that has caused uncertainty in the global solar industry.
The special committee also asked the company to review other strategic alternatives.