Special Situations
CSIQ: Potential Listing in China Will Provide Significant Upside, Enters MP
Over the last five years, Canadian Solar, Inc. (CSIQ) has underperformed compared to the S&P 500 Index, with a return of +8% compared to the S&P 500 Index’s +62%. Following several unsuccessful pursuits of value creation through a previous attempted Spinoff and failed effort to go private, CSIQ is back to reconsidering a broad range of value-enhancing strategic alternatives for its Modules & Systems Solutions (MSS) and Energy businesses. We lay out a case for a Spinoff of the MSS segment.

  • Strategic Review Announced This Week (January 6) / Decreasing Focus on MSS Segment Indicates Potential Separation
  • Prior Failed Attempts at a Spinoff & Going Private / Value Investor Brought on Board to Help with Strategic Review
  • MSS Business Commands Higher Multiple than CSIQ Combined / Peer SPWR's Spinoff Announcement Met with Tepid Response
  • Chinese Peers' Multiples are Much Higher than US Peers / Spinoff Listing in China Potentially Offers Further Upside
  • CSIQ Enters the Special Situations Model Portfolio at the End of Today's (January 10) VWAP
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