Trina Solar To Go Private In All-cash Deal

Chinese solar energy company Trina Solar Ltd. said Monday it has reached a merger agreement with Fortune Solar Holdings Ltd. and one of its units, after which it will be taken private by an investor consortium in an all-cash deal that implies an equity value of $1.1 billion. The investor consortium includes Chief Executive Jifan Gao, Shanghai Xingsheng Equity Investment & Management Co. Ltd., Shanghai Xingjing Investment Management Co. Ltd., Great Zhongou Asset Management (Shanghai) Co. Ltd., Liuan Xinshi Asset Management Co. Ltd. and/or their respective affiliates. The merger consideration is equal to a premium of 21.5% over the closing price of Trina's American Depositary Share Dec. 11, 2015, the last day before the company announced the receipt of a going-private transaction. It is equal to a premium of 40.6% over the closing price of the ADS on Friday, July 29, the last day prior to Monday's announcement. The deal is expected to close in the first quarter of 2017. Shares were trading up 27% after a trading halt was lifted. The S&P 500 was up 0.04%.