Reliance Industries announces completion of REC Solar Norway sale

NEW DELHI: Reliance Industries Ltd (RIL) on Thursday said that it had completed the sale of REC Solar Norway AS to Oslo-listed Elkem ASA for around USD 22 million.

REC Norway is a wholly-owned unit of REC Solar Holdings, involved in the manufacturing of kerf-based polysilicon in the Scandinavian country.

In October 2021, a unit of Reliance acquired Norway's solar panel manufacturer at an enterprise value of USD 771 million as the Indian oil-to-retail conglomerate sought to extend its dominance into alternative energy.

In January this year, Reliance stated that REC Solar Holdings AS, a wholly-owned step-down subsidiary, on the 14th of the same month entered into a share purchase agreement with Elkem ASA for the sale of its 100 percent equity stake in REC Solar Norway AS for an aggregate cash consideration of USD 22 million.

The firm confirmed the completion of the sale in a stock exchange filing.

"Consequently, REC Norway has ceased to be a subsidiary of the company," it added.

Founded in 1904, Elkem ASA is a silicon-based material provider and is listed on the Oslo Stock Exchange.

"Reliance will continue to retain the technology and intellectual property rights pertaining to kerf-based polysilicon," the firm had stated in January.

REC Norway had a turnover of Norwegian krone 1.1 billion in the year 2022 and a net worth of Norwegian krone 0.3 billion as of December 31, 2022. It contributed about 0.08 percent and 0.03 percent, respectively, to Reliance's annual consolidated turnover and net worth for the financial year 2022-23.

In October 2021, RIL bought REC Solar Holdings from China National Bluestar Group Co. to expand in green energy markets globally, including the US, Europe, Australia, and elsewhere in Asia.

The acquisition was a part of company chairman Mukesh Ambani's pledge to spend USD 10 billion on green energy over three years.

REC makes solar-grade polysilicon and solar panels. It modules at facilities in Norway and Singapore.

Reliance was to use REC's technology to manufacture metallic silicon and solar panels at its Gigafactory located in Jamnagar, Gujarat.

REC Solar Holdings AS and its subsidiaries, engaged in the business of manufacturing as well as the sale of solar PV HJT cells and modules, continue to be the subsidiaries of Reliance.