JA Solar Holdings Co. Ltd. has entered into a share-transfer agreement with M.SETEK Co. Ltd., a Japan-based polysilicon and solar wafer manufacturer controlled by AU Optronics Corp.
M.SETEK will transfer its 65% equity interest in Hebei Ningjin Songgong Semiconductor Co. Ltd. to JA Solar Hong Kong Ltd., a wholly owned subsidiary of the company, for RMB247.0 million (approximately $38.9 million).
Ningjin Songgong is a producer of solar-grade monocrystalline silicon ingots with an annual production capacity of 2,000 metric tons. Its production of monocrystalline silicon ingots is expected to complement the company's existing monocrystalline silicon wafer slicing capabilities.
The parties expect to complete the share transfer by the end of this year, subject to possible government approval. The parties have been liaising with the Anti-Monopoly Bureau of the Ministry of Commerce of the People's Republic of China (PRC) to evaluate the necessity of an anti-trust filing of the transaction under PRC law.
The share transfer is part of an arrangement with M.SETEK to settle outstanding prepayments made by the company to M.SETEK for polysilicon supply. Due to a magnitude-9 earthquake in Japan and a consequent tsunami, M.SETEK failed to make the majority of the scheduled delivery of polysilicon to the company, JA Solar says.