Investment rumors boost SolarWorld stocks02. April 2013 | Industry & Suppliers, Investor news | By: Sandra Enkhardt
Speculation that SolarWorld may receive a three-digit million investment from Qatar saw the German photovoltaic company’s stock temporarily jump. It has failed to respond to the rumors.
SolarWorld AG is currently wrestling with the restructuring of its financial commitments and is in negotiation with the banks. Today, April 2, however, the company’s stock received a short-term boost amid rumors that a three-digit million investment from Qatar could be on the cards.
On the back of the news, stocks rose to €0.923 per share, up from €0.862 at the start of the day. Although they dropped shortly afterwards, they were still in positive territory at midday.
In 2010, SolarWorld signed an agreement with Qatar to build a silicon factory in the desert state. The cost of the plant, with a planned annual production capacity of 8,000 tons, is expected to be around €1 billion, according to Germany’s "Der Aktionär".
It is not however clear how much SolarWorld will invest in the plant, and if it can even stump up the finances, given its current financial position. It is also conceivable, continues Der Aktionär, that the financial help is only to do with increasing investment at the joint factory, which would not solve SolarWorld’s problems. And, a direct involvement in the photovoltaic company by Qatar is unlikely.
SolarWorld has failed to respond to the speculation. Due to ongoing discussions with its creditors, the company postponed the publication of its 2012 financial figures. Görg law firm and Houlihan Lokey investment bank were brought in to help with the restructuring plan. Just days before, its removal from the TecDAX, Germany’s stock exchange, was announced.
Translated by Becky Beetz.
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