CSIQ (listed as 688472.SH) has disclosed its strategic intentions to revamp its operational footprint in the U.S. market. This will be achieved through the formation of two joint ventures, designated as M and N, in collaboration with its controlling shareholder, Canadian Solar Inc. (also known as CSIQ). Within this partnership framework, CSIQ (referring to the relevant entity) will command a majority stake of 75.1%, while its Chinese counterpart (the other CSIQ-related entity) will retain a 24.9% interest.
Venture M is slated to concentrate exclusively on the U.S. photovoltaic (solar energy) sector, whereas Venture N will be dedicated to the U.S. energy storage market. Furthermore, CSIQ has outlined plans to restructure its manufacturing units that cater to the U.S. market, adopting an equity distribution mirroring that of the joint ventures. This strategic move is aimed at securing a lump-sum equity transfer payment, coupled with the prospect of continuous equity returns amounting to 24.9% from future U.S.-based operations.
At present, the proposed transaction, along with the associated waiver commitments, has received the green light from the board of directors. However, final approval is pending from the shareholders' meeting.