Suntech Power Holdings Co. Ltd. STP, one of the world's leading manufacturers of photovoltaic cells and modules, has acquired a minority stake in Shunda Holdings Co. Ltd, a manufacturer of solar wafers based in China, from Actis, a leading private equity investor in emerging markets, and Waichun Investment Fund, for a total consideration of $98.9 million.
Suntech also announced that a definitive 13-year silicon wafer supply agreement has been signed with a subsidiary of Shunda. Under the terms of the supply agreement, Shunda will supply Suntech specified annual volumes of silicon wafers with a total volume of approximately 7 GW from 2008 to 2020.
‘This strategic investment and long-term supply agreement will be instrumental in the profitable and rapid growth of both Suntech and Shunda,’ says Dr. Zhengrong Shi, Suntech's chairman and CEO. ‘This is another example of how we can leverage funds raised through our recent convertible notes offering to pursue strategic investments and high volume contracts that strengthen the long-term cost structure of our business model.’