Water Street Capital Issues Open Letter to Shareholders of REC Silicon

Rhea-AI Summary

Water Street Capital, owning 8.26% of REC Silicon (RNWEY), has announced its opposition to Hanwha Solutions Corporation's proposal to acquire all shares of REC Silicon. Water Street believes the offer significantly undervalues the company's assets and intellectual property. The investment firm plans to call an Extraordinary General Meeting (EGM) to investigate Hanwha's termination of its December 2024 10-year purchase agreement for polysilicon from REC Silicon's Moses Lake facility. Additionally, Water Street intends to nominate new directors at the upcoming Annual General Meeting to maintain the company's independence and protect shareholder value.

[ "Water Street Capital (8.26% stakeholder) is actively working to protect shareholder value", "Potential for higher valuation and better deal terms for shareholders", "Planned nomination of new directors could improve corporate governance" ]

Positive

• None.

Negative

• Termination of Hanwha's 10-year purchase agreement for Moses Lake facility polysilicon
• Potential conflict between major shareholders could impact company operations
• Uncertainty surrounding the company's future ownership and direction

Believes Hanwha's Plan to Purchase All Shares of REC Silicon Drastically Undervalues Company's Assets and Intellectual Property

Calls for Extraordinary General Meeting to Investigate Hanwha's Termination of its December 2024 Long-Term Purchase Agreement with REC Silicon

Intends to Nominate New Directors to REC Silicon Board at Upcoming Annual General Meeting to Preserve Company Independence and Value

JACKSONVILLE, Fla., May 23, 2025 /PRNewswire/ -- Water Street Capital, Inc. ("Water Street"), a long-term, value-oriented private investment firm which, together with its affiliates, collectively owns 8.26% of the outstanding common stock of REC Silicon ASA (OSL: RECSI.OL) ("REC Silicon" or the "Company"), today sent a letter to the Company's shareholders announcing its intention to vote against what it believes to be a significantly undervalued proposal from Hanwha Solutions Corporation ("Hanwha"), REC Silicon's largest shareholder, to purchase all shares of the Company.  

In its letter, Water Street stated its intention to call an Extraordinary General Meeting ("EGM") to investigate the circumstances that led to the termination of Hanwha's 10-year purchase contract with the Company in December 2024 to acquire all polysilicon from its Moses Lake facility. Further, Water Street announced its plan to nominate new directors to the Company's Board at its upcoming Annual General Meeting ("AGM").

The full text of the letter is attached.

Media Contact
Jonathan Gasthalter/Brandon Lin
Gasthalter & Co.
Tel: (212) 257-4170
jg@gasthalter.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/water-street-capital-issues-open-letter-to-shareholders-of-rec-silicon-302463884.html

SOURCE Water Street Capital, Inc.

FAQ

What is Water Street Capital's stake in REC Silicon (RNWEY)?

Water Street Capital, together with its affiliates, owns 8.26% of the outstanding common stock of REC Silicon.

Why is Water Street Capital opposing Hanwha's acquisition of REC Silicon?

Water Street Capital believes Hanwha's proposal to purchase all shares significantly undervalues REC Silicon's assets and intellectual property.

What happened to Hanwha's purchase agreement with REC Silicon?

Hanwha terminated its 10-year purchase contract with REC Silicon in December 2024, which was meant to acquire all polysilicon from the Moses Lake facility.

What actions is Water Street Capital planning to take regarding REC Silicon?

Water Street Capital plans to call an Extraordinary General Meeting to investigate the terminated purchase agreement and nominate new directors at the upcoming Annual General Meeting.