LDK Solar Invests In Germany-Based PV Technology Provider Sunways AG

Posted by SI Staff on January 03, 2012 No Comments
Categories : New & Noteworthy

LDK Solar Co. Ltd. says its wholly owned subsidiary LDK Solar Germany Holding GmbH has entered into an investment agreement with Sunways AG to acquire approximately 33% 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 2,201,805.50 euros.

Simultaneously, LDK Solar has announced its intention to submit to 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, the takeover offer is expected to be published late this month. Under this offer, a cash consideration of 1.90 euros per share is to be offered to the Sunways shareholders.

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 solar modules.

As a part of the arrangements, Sunways and LDK Solar have also agreed to terminate a long-term contract for the supply of wafers by LDK Solar to Sunways. The wafer supply contract will be reinstated if the capital increase should fail to be registered with the relevant German governmental authorities by June 30, 2012, the companies add.

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