Debt-laden SolarWorld 'close to Qatar investment'

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Debt-laden SolarWorld is close to securing financial backing from a Qatari investor, its chief executive has said, the second major move in a week in its efforts to get back on its feet.

"We will publish the size of the potential stake at the extraordinary general meeting," Frank Asbeck, nicknamed the "sun king" by solar industry media, told Reuters on Thursday, declining to name the investor.

One source familiar with the process said that Qatar Solar Technologies (QSTec), a previous joint venture between SolarWorld and the Qatar Foundation, was willing to take a minority stake in what was once Germany's largest solar company.

SolarWorld holds 29 percent of QSTec, and the Qatar Foundation 70 percent. The remaining 1 percent is owned by the Qatar Development Bank.

QSTec was not immediately available for comment.

Earlier this week, SolarWorld said it reached a preliminary deal on restructuring its 1.2 billion euros ($1.6 billion) debt load, including a debt-to-equity swap that would hand its creditors most of the ailing solar group.

According to Thomson Reuters data, some of SolarWorld's biggest bondholders in the company include GFC Advisers LLC, Do Investment AG and Pioneer Investment Management Ltd.

Solar companies have suffered from massive overcapacity of cells and modules, driving many sector players out of the market or into the arms of foreign buyers.

Last year, Q-Cells, once the world's top maker of solar cells, was bought up by South Korea's Hanwha, while Solon was acquired by United Arab Emirates-based Microsol.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
New global oil deal could draw lessons from 1998

New global oil deal could draw lessons from 1998

With oil prices touching their lowest level since 2003, OPEC...

No sign Saudi Arabia will ride to oil market rescue

No sign Saudi Arabia will ride to oil market rescue

Gulf kingdom has few options beyond sticking with a strategy...

Does the Saudi IPO signal the end of the age of oil?

Does the Saudi IPO signal the end of the age of oil?

Saudis may want to capitalise on an asset that’s only going to...

Most Discussed
  • 7
    Deported expats will face GCC-wide ban

    Thanks for using a British passport in your picture, is it just British expats that are deported? No, it's not in fact we are in the minority. Using a... more

    Sunday, 7 February 2016 1:57 PM - matt williams
  • 1
    UAE to build $3bn alumina refinery by end-2017

    What is being done for the recycling of Red Mud? I have contacted EGA several times requesting information on the recycling of the Red Mud. As of today... more

    Sunday, 7 February 2016 8:46 AM - Gary McNeish
  • 1
    Emirates beats rival Etihad in UAE battle of the brands

    Oh my! a survey of such magnitude - 1000 people in UAE! And where were these 1000 people from? Dubai? What nonsense as usual. If you ask most people in... more

    Sunday, 7 February 2016 1:58 PM - Steven
sponsoredTracking