Reliance completes sale of REC Solar Norway

New Delhi: Reliance Industries Ltd on Thursday said it has completed the sale of REC Solar Norway AS to Oslo-listed Elkem ASA for around $22 million.

REC Norway is a wholly-owned unit of REC Solar Holdings and is involved in the manufacturing of kerf-based polysilicon in the Scandinavian country.

In October 2021, a unit of Reliance acquired Norway's solar panel manufacturer at an enterprise value of $771 million as the Indian oil-to-retail conglomerate sought to extend its dominance into alternative energy.

In January this year, Reliance stated that REC Solar Holdings AS, a step-own wholly-owned subsidiary, on January 14, 2024, entered into a share purchase agreement with Elkem ASA for the sale of its 100 per cent equity stake in REC Solar Norway AS for an aggregate cash consideration of $22 million.

The sale has been completed, the firm said in a stock exchange filing.

"Consequently, REC Norway has ceased to be a subsidiary of the company,"it added.

Founded in 1904, Elkem ASA is a silicon-based material provider, and listed on the Oslo Stock Exchange.

Reliance will continue to retain the technology and intellectual property rights pertaining to kerf-based polysilicon, the firm had stated in January.

REC Norway had a turnover of Norwegian krone 1.1 billion in the calendar year 2022 and a net worth of Norwegian krone 0.3 billion as of December 31, 2022, contributing about 0.08 per cent and 0.03 per cent, respectively, of Reliance' annual consolidated turnover and net worth for the financial year 2022-23, it had said.

In October 2021, RIL bought REC Solar Holdings from China National Bluestar Group Co to expand in green energy markets globally, including the US, Europe, Australia and elsewhere in Asia.

The acquisition was part of company chairman Mukesh Ambani's pledge to spend $10 billion on green energy over three years.

REC makes solar-grade polysilicon and solar panels and modules at facilities in Norway and Singapore. Reliance was to use REC's technology to manufacture metallic silicon and solar panels at its gigafactory at Jamnagar in Gujarat.

REC Solar Holdings AS and its subsidiaries, engaged in the business of manufacturing and sale of solar PV HJT cells and modules, continue to be Reliance's subsidiaries.