China Solar & Clean Energy Solutions Inc., a manufacturer and distributor of solar water heaters, space heating devices and renewable energy solutions in the People's Republic of China, says that its wholly owned subsidiary, Beijing Deli Solar Technology Development Co. Ltd. has entered into a definitive agreement of divestment of its 100% equity interests in Shenzhen PengSangPu Solar Industrial Products Corp. (SZPSP) to the local management of SZPSP.
The transaction is expected to be completed by Sept. 6. Under the terms of the agreement, Deli-Solar will recoup 100% of its investment in SZPSP in two installments by early September.
Deli-Solar will receive the RMB 28,800,000.00 (approximately US$4.2 million) in cash and 939,364 shares in common stock of China Solar it had paid to the shareholders of SZPSP for the purpose of acquiring a 100% equity interest of SZPSP.
The weak performance of SZPSP has been a drag on the financial results of China Solar for the year 2008 and the first quarter of 2009, the company says. For the three months ending March 31, the total revenue from SZPSP was US$1,078,770, accounting for 17% of the total revenue for the period. The net loss from SZPSP was US$461,640 for the period, or 49% of the total loss for the period.
SOURCE: China Solar & Clean Energy Solutions Inc.
