Pareto Securities acting as the sole manager and bookrunner will attempt to sell between 40 and 95 million shares in Renewable Energy Corporation (4-9.5% of the share capital on REC) before the market opens in the morning.
The timing of the sale comes on the heels of REC’s participation in the Goldman Sachs Clean Energy Conference in New York. It may however prove unfortunate given the disappointing news from the Eurozone, which may cause considerable turmoil at market open tomorrow. Renewable Energy Corporation has also been suffering from weak performance of production facilities in Norway and is planning to shut down capacity. Recently dark clouds have gathered also in REC Silicon, which has been able to subsidize other company divisions with good profits and cash flow. REC share price is currently near all-time lows.
As far as potential sellers goes, Orkla ASA (OSE: ORK), owner of nearly 40% of shares made it clear few months ago, that they aim to divest their holdings in 2012. The second largest owner Hafslund ASA, (OSE: HNA), which currently holds a little less than 9% of shares has previously sold some of its REC holdings. There may be more than one party attempting to sell.
***Update:*** a little under 70 million shares were sold at 3.4 NOK per share. Shortly after the trade Hafslund flagged it had sold those shares and now has under 2% left. REC is down over 10% to 3.2 NOK in early trading. Later during the day, Hafslund also found buyers for the remaining 19 million shares. Plenty of different institutional investors bought shares.
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