The Hanergy solar conglomerate this month sold its UK business, which sells household thin film systems direct to the public through Ikea, for HK$1 (US$0.13) to itself.
Untangling the complex web of Hanergy entities registered in China, Bermuda, Singapore, the UK and the British Virgin Islands is rarely straightforward but it appears Bermuda-registered solar equipment manufacturing supplier Hanergy Solar Group Ltd financed the deal which saw its UK-registered Hanergy Solar PV Application UK Limited acquire the Hanergy UK business from the Singapore-registered module maker Hanergy Global Investment and Sales Pte.
That represents an internal deal for Chinese holding company Hanergy Holdings which has a 61.33% controlling stake in Hanergy Solar Group Ltd and wholly owns the Singapore-based vendor.
Hanergy pays Hanergy for Hanergy
Under the terms of the transaction, Hanergy Solar PV Application UK Ltd will acquire all of the shareholding in Hanergy UK as well as the GBP1.7 million (US$2.8 million) Hanergy UK owes the Singapore-registered vendor.
Hanergy UK started trading in July after signing the two-year agreement with Ikea and has net liabilities of GBP829,000.
In an announcement to the Hong Kong Stock Exchange about the deal, the Bermuda-registered Hanergy Solar Group said the acquisition formed part of its focus on expanding downstream activity by opening up the UK residential market.
The statement did not explain why the parent company's Singapore-based module business would be surrendering the same opportunity.
Hanergy Solar Group Ltd added it plans to diversify into thin-film based solar appliances, lamps, portable products and auto power systems.
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