Canadian Solar Inc denied reports in the Chinese media that China National Offshore Oil Co Ltd (CNOOC) was negotiating to buy the solar panel maker, trimming the gains that had lifted its shares as much as 31% in premarket trading.
“Canadian Solar is not currently in discussion with China National Offshore Oil Corp regarding a potential strategic transaction between the two companies, ”a company spokesman said in an email.
China Business Journal first reported on April 14 that CNOOC was negotiating the purchase of Canadian Solar, which is headquartered in Canada but has most of its operations in China. Canadian Solar shares are listed on the NASDAQ.
CNOOC was not immediately available to comment on the reports.
Like others in the solar industry, Canadian Solar has been hurt by the steep decline in prices for solar panels amid a massive oversupply of the equipment used to turn sunlight into electricity.
The company’s share price has dropped about 70% from the high seen in June last year, and its market value was currently $143 million US.
Shares of Canadian Solar erased part of their premarket rally but were still trading nearly 12% higher at $3.68 per share.