China’s Shunfeng Photovoltaic International announced on Monday that it had fully acquired the bankrupt Wuxi Suntech Group.
The move followed a vote by company shareholders approving an agreement reached in October between subsidiary Jiangsu Shunfeng, Wuxi Suntech and Wuxi Suntechs administrator regarding the acquisition of the insolvent companys equity interests.
Shunfeng said 100% of the votes cast at an extraordinary general meeting approved the resolution, making Wuxi Suntech a wholly-owned subsidiary of the group.
Jiangsu Shunfeng has agreed to pay CNY 3 billion ($483 million) for Wuxi Suntech, whose financial results will be consolidated into the Jiangsu Shunfengs accounts. Wuxi Suntech has two production plants in the city of Wuxi in Jiangsu Province: one with an annual production capacity of 1.6 GW for solar cells; the other with an annual production capacity of 2.4 GW for solar modules.
Zhang Yi, chairman of Shunfeng Photovoltaic International, said, "Looking forward, we aim to be a global green energy supplier and are excited by the opportunity to capitalize on the cutting-edge R&D, technological advantages and superb solar products of Suntech. Its global presence and management expertise will allow us to strengthen our own offering."
Yi added that the group was expanding its services from upstream solar products manufacturing to downstream power generation, making it a one-stop shop for solar energy power needs.
Shunfeng is exploring further strategic acquisition opportunities around the world to expand its footprint in the global clean energy market, Yi said.
Wuxi Suntech CEO Eric Luo added, "With this acquisition, Wuxi Suntech begins a new era filled with opportunities. Suntech now has a solid financial footing with almost zero debt, and we are well placed to reclaim our position as a global leader in the solar PV market."
Luo said the company’s future expansion would come through strategic investments in its products, technology and services.
"Together with Shunfeng we will become a ‘total solar solutions’ provider making the future of our companies and of the solar industry very bright."