Hanwha Q CELLS, a global photovoltaic (PV) manufacturer of solar modules, has received a preliminary non-binding proposal letter from Hanwha Solar Holdings (HSH), a subsidiary of Hanwha Chemical Corporation incorporated in the Republic of Korea.

Under the proposal, HSH will acquire all outstanding shares of HQCL not already owned by it in a “going private” transaction for a cash consideration of $9 per American Depositary Share (ADS), (each ADS represents fifty ordinary shares), or $0.18 per ordinary share.

Per HSH, “This purchase price represents a premium of approximately 35.7 percent to the HQCL’s closing price on August 1, 2018.” HSH intends to finance the transaction with cash contributions or a shareholder loan from its parent company, Hanwha Chemical Corporation.

The HQCL board intends to form a special committee consisting of independent directors to consider this proposal.

According to Mercom Solar Funding and M&A Reports, the exodus of Chinese public solar companies from U.S. stock markets started in 2017 as many felt they were undervalued. Most Chinese companies have struggled in the U.S. stock markets for years due to the constant boom-and-bust cycles among other reasons. Trina was the first company to go private followed by JA Solar and Renesola, which took its manufacturing unit private. Canadian Solar was also exploring going private earlier in the year.

In June 2018, Hanwha Q CELLS signed a multi-party memorandum of understanding (MoU) under which it will supply solar modules for rooftop solar installations atop various gas stations across South Korea. As part of the project, Hanwha Q CELLS will provide solar modules to members of the Korea Oil Station Association (KOSA).

According to Mercom India Research, Hanwha Q Cells has supplied 1.8 GW of modules to India to date.