Mukesh Ambani-led Reliance Industries Limited has disclosed the sale of its subsidiary, REC Solar Norway AS, to Alkem AS, listed on the Oslo Stock Exchange, for approximately $22 million. The announcement was made on Monday, indicating a strategic move by Reliance Industries to streamline its portfolio.
Reliance Industries had acquired REC Solar Holdings, the parent company of REC Solar Norway, in October 2021, enhancing its presence in the oil-to-retail sector. The subsidiary’s purchase of REC Solar Norway was valued at $771 million.
Mukesh Ambani – The Deal Details
As per the stock exchange filing, REC Solar Holdings AS, a wholly-owned subsidiary of Reliance Industries Ltd, issued shares at Rs 100 per share on January 14, 2024. The agreement for the sale of REC Solar Norway AS to Alkem ASA has been finalized, amounting to $22 million.
In 2022, REC Norway reported a turnover of NOK 1.1 billion and total assets of NOK 0.3 billion as of December 31, 2022. For the financial year 2022-23, REC Norway’s contribution to Reliance’s consolidated business and net worth stood at 0.08 percent and 0.03 percent, respectively. Reliance Industries had initially acquired REC Solar Holdings to bolster its global presence in green energy markets, spanning the US, Europe, Australia, and other parts of Asia.
Mukesh Ambani –About REC Norway
Established in 1904, REC Solar Norway specializes in the manufacturing of Kerf-based polysilicon. Following the acquisition, Alkem ASA plans to continue the polysilicon business, maintaining REC Norway’s operations in the Scandinavian region. This strategic divestment aligns with Reliance Industries’ ongoing efforts to optimize its business portfolio and focus on core growth areas.