On January 2nd, 2012 LDK Solar Company Ltd. (Xinyu, Jiangxi, China) announced that its German subsidiary will acquire 33% of Sunways AG's (Konstanz, Germany) increased share capital following a capital increase from its authorized capital. The move has been approved by Sunways' management board and supervisory board.

Concurrently, LDK Solar Germany Holding GmbH (Germany) announced its intent to acquire all outstanding shares in the company. Subject to approval by Germany's Federal Financial Supervisory Authority, this takeover offer is expected to be published in late January 2012.

"We are happy that we have found in LDK a strategic anchor investor who shares our vision of the photovoltaic future and with whom we were able to develop over many years of intensive cooperation a relationship of trust with the highest appreciation and respect," says Sunways Management Board Chairman Michael Wilhelm.

"We support LDK Solar’s intention to further increase its stake since this would facilitate the realization of synergies on the sales as well as on the cost side and would enable us to demonstrate a specific growth funding."

LDK to purchase Sunways shares at USD 2.48 per share

LDK notes that it has supplied raw materials to Sunways for many years, and in 2010 entered into a cooperation agreement for the production of Sunways solar photovoltaic (PV) modules.

In the capital increase, LDK Solar Germany Holding GmbH (Germany) will subscribe for 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 totals EUR 2.20 million (USD 2.87 million).

LDK Solar Germany is offering to purchase all Sunways shares at EUR 1.90 per share (USD 2.48 per share). Both the capital increase and the takeover offer have to be approved by Germany's Federal Cartel Office, and the offers may be completed as early as the first quarter of 2012.

Transactions offer opportunities for joint PV development

Accompanying these transactions, Sunways will acquire indirect ownership of a LDK company based in China. Through this Sunways will have access to LDK Solar's module production plants in China, which will include opportunities for joint development of high-performance PV modules.

LDK states that its investment proves the technological leadership of Sunways in PV cells and inverters, and expects that the combined competencies of the two companies will open up greater international opportunities.

Finally, Sunways and LDK Solar Germany have terminated a long-term wafer supply contract, which the companies say was no longer in line with the current market situation. Under the termination agreement, Sunways has waived a previously made down-payment and has agreed to make a final payment equal to roughly 2% of the initial contract volume.

2012-01-04| Courtesy: Sunways AG | solarserver.com © Heindl Server GmbH

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