Swiss solar products manufacturer Meyer Burger Technology AG announced plans to undergo a significant share restructuring, aiming to bolster investor interest as it navigates through turbulent times in the European solar manufacturing landscape.
In response to a drastic erosion of its market value over the past year, Meyer Burger aims to streamline its share structure by proposing a reverse stock split at a ratio of 750:1. This move would elevate the nominal value per share from the current CHF 0.01 to CHF 7.50 (USD 8.32/EUR 7.67), as outlined in the company's shareholder invitation.
The decision comes against a backdrop of considerable challenges faced by European solar companies, including plummeting prices and heightened competition from Chinese counterparts flooding the market with solar panels. Meyer Burger's stock has witnessed a substantial decline, falling from CHF 0.57 to CHF 0.01 over the past 12 months.
In a strategic shift, Meyer Burger has redirected its growth endeavors towards the US market, abandoning previous expansion plans in Germany. The company recently secured CHF 206.8 million through a rights issue, earmarked for the completion of solar cell manufacturing facilities in Colorado and a solar module plant in Arizona, each boasting a capacity of 2 GW.
Previously advocating for increased state support in Germany, Meyer Burger encountered setbacks as government initiatives failed to materialize. Consequently, the company halted production at its solar module facility in Freiberg earlier this year, with plans for its closure underway. However, operations at the solar cell factory in Thalheim, Germany, remain active to sustain expansion efforts in Arizona.
The proposed reverse stock split, subject to shareholder approval at the upcoming annual general meeting scheduled for June 25, underscores Meyer Burger's proactive measures to adapt to market challenges and attract potential investors. Franz Richter is nominated for re-election as chairman, a decision to be voted upon by shareholders.
