Solar power manufacturer SunPower (NASDAQ:SPWR) said today it has agreed to acquire Total's (NYSE:TOT) Tenesol solar provider subsidiary.
SunPower will acquire Tenesol for $165.4 million in cash.
Concurrent with the closing of the acquisition, Total has agreed to purchase 18.6 million shares of SunPower common stock in a private placement at $8.80 per share, a 50% premium over SunPower's closing price yesterday.
Total will own 66% of SunPower common shares following the purchase.
Tenesol, based in France, has operations in 18 countries and solar panel manufacturing facilities in France and South Africa. SunPower said the acquisition is a step toward differentiating itself in the competitive solar market.
The transaction is expected to close early in 2012.
SunPower said the acquisition is expected to positively impact its financial position in 2012.
SunPower shares are surging on today's news.
Solar investors will be keeping an eye on other solar stocks to see if they rise on enthusiasm in the sector. First Solar (NASDAQ:FSLR) looked poised to trade higher Friday. Suntech (STP) and LDK Solar (LDK) were unchanged in the premarket.
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