ReneSola Ltd. (ADR) (NYSE: SOL) is off to an incredibly strong start to the trading session this morning, and for good reason. The company announced news surrounding the potential acquisition of its manufacturing business. Of course, this led to excitement among investors, sending the stock toward the top and prompting our partners at Trade Ideas to send the alert. At the moment (9:34), SOL is trading at $2.54 per share after a gain of $0.15 per share or 6.28% thus far today.
SOL Gains On Potential Acquisition
As mentioned above, ReneSola is having a strong start to the day today following the release of some acquisition news. Today, the company announced that its board has received a preliminary non-binding proposal from Xianshou Li, CEO at SOL, to acquire the company's manufacturing business as well as its LED distribution business. The offer also includes the assumption of indebtedness.
These assets currently are valued in the negative, -$81 million to be exact. As a result, in exchange for assumption by Li of such indebtedness, the company would issue additional American depositary shares to Li at $4.50 per ADS. The board of directors at SOL has formed a special committee in order to consider the proposal as well as other alternatives available.
Stop wasting your time! Find winning trades in minutes with Trade Ideas!
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SOL. In particular, we're interested in following the story to see if the acquisition does indeed happen. Nonetheless, we'll continue to follow closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!