LDK Solar Announces Investment in Sunways AG, China Development Bank Financing
Tech & Pharma
January 4, 2012
LDK Solar Germany Holding GmbH, a wholly owned subsidiary of LDK Solar Co., Ltd., has signed an agreement to acquire approximately 33 percent of Sunways AG’ increased share capital.
AsianScientist (Jan. 4, 2012) – LDK Solar Co., Ltd. announced yesterday that it, through its wholly owned subsidiary, LDK Solar Germany Holding GmbH, has entered into an investment agreement, dated December 31, 2011, with Sunways AG, a German stock corporation with its shares listed on the Frankfurt Stock Exchange, to acquire approximately 33 percent of Sunways’ increased share capital following a capital increase from its authorized capital.
In the capital increase, LDK Solar will subscribe for a total of 5.79 million new shares of Sunways to be issued against a cash contribution and contributions in kind. The issue amount of the shares to be granted against the cash contribution amounts to a total of euro 2,201,805.50.
Simultaneously, LDK Solar has announced its intention to submit to the Sunways shareholders a public takeover offer for all outstanding shares in the company. Subject to the approval of the offer’s publication by the Federal Financial Supervisory Authority (Bundesanstalt fur Finanzdienstleistungsaufsicht – BaFin), the takeover offer is expected to be published in late January 2012. Under this offer, a cash consideration of euro 1.90 per share is to be offered to the Sunways shareholders.
Both the capital increase as well as the completion of the takeover offer must be formally cleared by the Federal Cartel Office (Bundeskartellamt). Following the clearance under the cartel law, the completion of the offer is currently expected to occur in the first quarter of 2012.
By way of the capital increase against contributions in kind, Sunways will acquire the indirect ownership of a company based in China. Through this China-based subsidiary, Sunways will have access to LDK Solar’s module production plants in China for the further joint development of high-performance solar modules cost-effectively.
As a part of the arrangements under the investment agreement signed on December 31, 2011, Sunways and LDK Solar have also agreed to terminate the formerly existing long-term contract for the supply of wafers by LDK Solar to Sunways. The wafer supply contract will, however, be reinstated if the capital increase should fail to be registered with the relevant German governmental authorities by June 30, 2012.
LDK Solar, despite its investment in Sunways and the takeover offer, has no intention to cause any delisting of Sunways shares from the Frankfurt Stock exchange or any other trading forum. Neither does LDK Solar intend to interfere with the Sunways brand.
“We are investing in Sunways because we are convinced of the synergies of our two companies in light of our and Sunways’ products and business models. We also believe in the market potential of the Sunways brand. This is a perfect match for both sides,” said Xiaofeng Peng, Chairman, CEO and founder of LDK Solar.
China Development Bank Financing
LDK Solar today also announced that China Development Bank Corporation (CDB) has recently approved a fifteen-year project loan for two solar power plants with a total capacity of 8 MW combined. The solar power plants are located in California and are wholly-owned by LDK Solar.
CDB has also approved a fifteen-year buyer’s credit to KDC Solar LLC for its two New Jersey solar power plants, Imclone and White Rose, consisting of 14.7 MW of its 300 MW portfolio. Additionally, CDB approved two-year construction financing to EPC contractor, Solar Power Inc., a company majority owned by LDK Solar, for its undertaking of the New Jersey projects.
Source: LDK Solar Co. Ltd.
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