ΕιδήσειςΕυρωπαϊκές Ειδήσεις Bid for Suntech Assets Passes Regulatory Hurdle in China dj Παρ, 25 Οκτωβρίου 2013 - 18:30
The main assets of what was once China 's largest solar-panel maker are poised to be scooped up by a much smaller peer. Shunfeng Photovoltaic International Ltd. (1165.HK), a midsize solar manufacturer listed in Hong Kong , has won local regulatory approval to buy the main Chinese subsidiary of Suntech Power Holdings Co. (STP), spokespeople for both companies said Friday. The subsidiary, known as Wuxi Suntech Power Co., holds important assets such as intellectual property, more than two gigawatts of solar-panel manufacturing capacity and a research-and-development unit, according to people familiar with the matter. However, it is also saddled with 10.7 billion yuan ($1.76 billion) in Chinese debt, the people said. Suntech, based in the eastern Chinese city of Wuxi , has posted heavy losses due to a plunge in solar-panel prices and trade sanctions by the U.S. The New York-listed company in March defaulted on $541 million in convertible notes held by U.S. bondholders, which put Wuxi Suntech into bankruptcy proceedings in China . Suntech said earlier this month that Shunfeng had been "provisionally selected" as the best strategic investor for Wuxi Suntech, beating out a local government-controlled company, Wuxi Guolian Development Group Co. Shunfeng is a minnow when compared with Suntech--in 2012, it shipped 206 megawatts of solar-equipment compared with Suntech's 1.8 gigawatts, the companies' annual reports show. A spokeswoman at the Wuxi 's foreign affairs office said that due to the restructuring being "fairly complicated," the Wuxi Economic and Information Committee and Wuxi Guolian didn't want to comment. Spokespeople for both companies said the next step is for Chinese creditors of Wuxi Suntech to approve the deal at a meeting sometime next month. A Suntech spokesman said a local court must then approve the deal for it to be finalized. A Shunfeng spokeswoman said the acquisition doesn't include the New York-listed holding company, leaving the fate of Suntech's overseas operations and prospects of financial recovery for U.S. bondholders still unclear. Shunfeng said earlier this month that it was bidding for Wuxi Suntech but didn't give a figure. However, the company said the acquisition was "very substantial" and deposited 500 million yuan ($82 million) with a court-appointed administrator that is overseeing the unit's restructuring. Shunfeng requested that trading in its shares in Hong Kong be suspended on Thursday, pending an announcement. The suspension remained in effect Friday. The shares are up 62% since the Wuxi Suntech bid was announced. Shunfeng's biggest shareholder is Cheng Kin Ming, who made his fortune in real estate. The businessman, who is based in Hong Kong and also known as Zheng Jianming, purchased 30% of Shunfeng's shares last year and has since cobbled together a vertically integrated solar-power supply chain from pieces of several large Chinese solar manufacturers. Mr. Cheng, for example, this year acquired more than a fifth of LDK Solar Co., once the world's largest manufacturer of solar wafers, a key component of solar panels. Shunfeng said earlier this month that it would finance its acquisition of Wuxi Suntech through debt financing, capital raising, joint ventures and partnerships. It added that it would also use the proceeds from a plan announced in September to issue new shares. On Tuesday, Shunfeng said it raised 1.12 billion Hong Kong dollars ($144.5 million) through the issuance. On the day Shunfeng announced its bid for Wuxi Suntech, Shunfeng also agreed to a loan facility with a financial institution called HK Bank for up to HK$980 million, according to the statements. Shunfeng must repay the loan if Mr. Cheng gives up control of the company, the statements said. Διαβάστε ακόμα Ποια Είναι η Επόμενη Ευρωπαία Επίτροπος Περιβάλλοντος; Τρι, 27 Αυγούστου 2024 - 17:40 Σερβία: Κατάρρευση του Αγροτικού Τομέα λόγω της Λειψυδρίας Τρι, 27 Αυγούστου 2024 - 17:20 Λιώνει Ταχύτατα ο Μεγαλύτερος Παγετώνας της Γαλλίας Τρι, 27 Αυγούστου 2024 - 17:00 ΕΕ: Βοήθεια 101,5 Εκατομμυρίων Ευρώ στην Ελλάδα για τις Πλημμύρες του 2023 Τρι, 27 Αυγούστου 2024 - 16:20 Great Sea Interconnector: Θα Λύσουν τον 'Γόρδιο Δεσμό' Μητσοτάκης και Χριστοδουλίδης; Τρι, 27 Αυγούστου 2024 - 16:00
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