Suntech has confirmed a consortium of the Wuxi local government and cell and module manufacturer Jiangsu Shunfeng has been selected as the white knight bidder for its insolvent Wuxi Suntech Chinese manufacturing unit.
In a filing to the U.S. Securities and Exchange Commission (SEC) yesterday, parent company Suntech Power Holdings said the administrator of the failed Wuxi Suntech unit had confirmed an approach on Tuesday night by Wuxi Guolian Group and Jiangsu Shunfeng.
Wuxi Guolian is the Chinese state-owned investment company of the Wuxi local government.
No financial details of the approach were confirmed in the SEC filing which stated the investors intend to restructure Wuxi Suntech.
pv magazine had reported, in a separate announcement to the Hong Kong Stock Exchange on Tuesday, Shunfeng’s wholly-owned Jiangsu Shunfeng Photovoltaic Technology subsidiary paid a RMB500 million (US$81.6 million) deposit to the administrator of Wuxi Suntech, refundable if the deal fails to materialize.
Shunfeng share issue boosts acquisition fund
Shunfeng’s filing said the company plans to fund the acquisition with debt financing, capital raising, a joint venture or other partnership, cash reserves or a combination of those methods.
Rumors of a rival bid by polysilicon manufacturer GCL-Poly with Wuxi Guolian seem to have been wide of the mark.
Jiangsu Shunfeng parent company Shunfeng Photovoltaic International had paved the way for the bid with an extraordinary general meeting yesterday notified on September 24 at which more than 98% of shareholders approved the issuance of up to 400 million new shares in the company.
With a listing price range of HK$2.50-HK$2.80 per share, a full subscription would be expected to raise between HK$1 billion and HK$1.12 billion (US$129 million to $144 million) towards the stake acquisition.