CSIQ has two parts to it.. CSI Solar and Recurrent Energy .. The reason I said it is a different beast is because of their Recurrent Energy part of the business, which is an vertically integrated unit that bids and builds big solar projects.. Now they are also getting into projects where they will own part of ongoing energy production and hence a more regular recurring revenue.
Following drew my attention to what the sums of the parts are worth for CSIQ.. Like other solar players, ratios are out of whack.
In January 2024, the Company announced a $500 million investment from BlackRock. The investment will provide Recurrent Energy with additional capital to grow its high value project development pipeline while executing its strategy to transition from a pure developer to a developer plus long-term owner and operator in select markets including the U.S. and Europe. This transition is expected to create a more diversified portfolio and provide more stable long-term revenue in low-risk currencies and enable Recurrent Energy to create and retain greater value in its own project development pipeline.
The perimeter of the transaction includes the U.S., Canada, Spain, Italy, the U.K., France, the Netherlands, Germany, South Africa, Brazil, Chile, Colombia, Australia, South Korea and Taiwan; and excludes Canadian Solar's project development business in Japan and China, and certain assets in Latin America and Taiwan. Closing of the transaction is subject to regulatory approvals and certain terms and conditions in accordance with the transaction agreements.
The $500 million investment will represent 20% of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis. Canadian Solar will continue to own the remaining majority shares of Recurrent Energy after the closing of the investment. investors.canadiansolar.com |
