First Solar Stock Sees $350 Million Buy From Big Investors -- Barrons.com

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Ed Lin

Two of First Solar's former large shareholders are back on record, buying nearly two million more shares of the solar company.

Farhad "Fred" Ebrahimi, former head of software firm Quark, and his wife, Mary Wilkie Ebrahimi, bought 1.75 million more First Solar shares on Dec. 6 for $349 million, an average price of $199.02, lifting their investment to 6.88 million shares, a stake of 6.4%.

The shares were purchased on the open market, according to a filing with the Securities and Exchange Commission.

The couple's First Solar stake had slipped below the 5% mark in August, which allowed them to no longer disclose sales of the stock to the SEC. The December stock buy pushed the investment back over 5%, requiring an SEC filing.

The Ebrahimis filed a form 13D, which is typically used by activist investors who seek dialogue with company management to suggest changes, but their filing doesn't indicate any such plans. A 13G form is a more-simplified disclosure, typically used by passive investors who don't plan to push for change.

A representative of the Ebrahimis declined to comment.

The filing also notes the Ebrahimis have a material amount of options outstanding of First Solar stock. They have put options outstanding on 7.54 million shares that would obligate them to buy shares at prices ranging from $130 to $220 each. The put options have expiration dates ranging from Jan. 17, 2025, through Jan. 15, 2027.

The Ebrahimis also have call options outstanding on 4.29 million shares that would obligate them to sell at prices ranging from $250 to $400 each. The call options have expirations ranging from Jan. 17, 2025, through Jan. 15, 2027.

The obligations to buy and sell First Solar stock through the options outstanding are beyond the control of the Ebrahimis, and may be exercised by the parties owning the options.

Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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December 12, 2024 14:54 ET (19:54 GMT)

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