Water Street Capital Evaluates REC Silicon's Recent Annual Meeting Results

On June 25, 2025, Jacksonville, Florida, was the backdrop for significant developments at REC Silicon ASA’s Annual General Meeting. Water Street Capital, Inc., a private investment firm focused on long-term, value-driven strategies, is the second-largest shareholder in REC Silicon, owning 8.26% of the company's common stock. Due to the pivotal nature of the meeting, Water Street felt compelled to comment on the outcomes and the future of REC Silicon.

During the meeting, the company's board of directors was reconstituted with the appointment of key individuals, including John Adams, Karina Fossmark, Jane Power, Jens Ulltveit-Moe, and Mike Kerschen. This board reshuffle comes at a critical juncture for REC Silicon, especially following the termination of a significant contract with Hanwha in December 2024, wherein Hanwha was set to purchase all polysilicon from REC’s Moses Lake facility. This contract’s cancellation has triggered a tactical investigation into the surrounding circumstances, signifying the board's commitment to clarity and accountability.

In a statement issued by Water Street Capital, they expressed gratitude to the many investors who supported their efforts to ensure that the focus of REC Silicon's board remains on maximizing company value. A core concern highlighted was the recent actions and comments from Hanwha Solutions Corporation. The firm's largest shareholder has indicated potential reevaluations of their funding support for REC Silicon's operations should they lose control over the board. Water Street noted that this situation is unfortunate and expressed its hope for constructive collaboration among all shareholders.

The context of the meeting emphasized a desire for better communication regarding the intrinsic value of REC Silicon and its assets. Water Street criticized the process leading to a shareholder vote favoring an offer from Anchor AS, which they deemed significantly undervalued at NOK2.20 per share. The firm made it clear that its goals align with the best interests of fellow shareholders, advocating for a board that prioritizes transparency and the optimization of shareholder value moving forward.

In conclusion, Water Street Capital is optimistic that REC Silicon's new leadership will foster a renewed direction focused on enhancing company performance and shareholder returns. As stated by Gilchrist Berg, the founder and principal of Water Street, “Life shrinks or expands in proportion to one’s courage.” This sentiment underscores the firm’s unwavering commitment to courageously navigate these corporate changes.

The positions held by the newly appointed board members will be crucial in leading REC Silicon into a future that promises better governance and a firm grasp on the company's strategic direction. The relationship between Water Street and Hanwha will be an intriguing aspect of REC Silicon’s evolution, and stakeholders will be watching closely as this situation unfolds in the coming months.

As REC Silicon embarks on this new chapter, the industry will keenly observe the results from the decisions being made today, as they will have lasting implications for the company and its shareholders.