SunPower's Planned Maxeon Solar Technologies Spin-Off Receives Key Regulatory Approval

Achievement of Anti-Trust Clearance for Transaction

News provided by

May 15, 2020, 08:05 ET

SAN JOSE, Calif., May 15, 2020 /PRNewswire/ -- SunPower Corp. (NASDAQ:SPWR) today announced that its planned company split into two independent, pure-play solar companies took an important step forward when Maxeon Solar Technologies' future investor and long-time partner Tianjin Zhonghuan Semiconductor Co. (TZS), received necessary regulatory approval from China's State Administration for Market Regulation.

SunPower announced last November that it planned to separate into SunPower and Maxeon Solar. Each company will focus on distinct offerings built on extensive experience across the solar value chain.

Concurrent with the transaction, an equity investment of $298 million will be made in Maxeon Solar by TZS, a premier global supplier of silicon wafers.

"Today's announcement puts us one step closer toward creating two independent, pure play, publicly-traded companies," said Tom Werner, president and CEO of SunPower. "Our planned transaction will allow for each company to focus on their core strengths in their respective markets around the world."

The planned company split is expected to be completed by the end of the second quarter, pending signing of financial facilities. Maxeon Solar is planning to host a Capital Markets Day prior to the close of the transaction.

About SunPower

As one of the world's most innovative and sustainable energy companies, SunPower Corporation (NASDAQ: SPWR) provides a diverse group of customers with complete solar solutions and services. Residential customers, businesses, governments, schools and utilities around the globe rely on SunPower's more than 30 years of proven experience. From the first flip of the switch, SunPower delivers maximum value and superb performance throughout the long life of every solar system. Headquartered in Silicon Valley, SunPower has dedicated, customer-focused employees in Africa, Asia, Australia, Europe, North and South America. For more information about how SunPower is changing the way our world is powered, visit www.sunpower.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the anticipated spin-off of Maxeon Solar and TZS's investment therein, including timing and certainty, and the anticipated benefits of the transaction. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to challenges in executing transactions key to our strategic plans, including regulatory, logistical, and other challenges that may arise, and potential disruptions to our operations that may result from epidemics or natural disasters, including impacts of the Covid-19 pandemic. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent report on Form 10-K, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.

SOURCE SunPower Corp.