STR Holdings (STRI +11.4%) has struck a deal with Chinese solar system integrator Zhenfa Energy under which Zhenfa will acquire a 51% stake in STR for $21.7M, and STR will subsequently pay an $0.85/share special dividend to shareholders.
Other details: 1) Zhenfa will have the right to nominate 4 of STR's 7 board members. 2) STR will carry out a reverse split once the special dividend is paid. 3) STR and Zhenfa are forming a partnership aimed at growing sales of STR's solar encapsulants to Chinese module makers.
The transaction is expected to close in Q4.