Comtec Solar Systems is not the first Chinese solar manufacturer to expand further downstream the solar industry, as the heavyweights of the solar world search for ever-increasing opportunities. The company made an announcement at the start of the year for its downstream plans, but had yet to make any clear moves, until the agreement to purchase residential solar project developer Forum (Asia).
The deal between Comtec and Forum is for the purchase of 51% of the latter’s equity, at a price of up to RMB 52.2 million (USD 7.6 million). This includes the purchase of 166 million consideration shares, at the price of HKD 0.355 apiece.
Forum is a relatively new company on the solar scene, but is expected to have completed 15 MW of residential solar projects during 2016, by the end of the year. And it forecasts steady growth, with predictions of completing a further 77 MW of residential PV projects over the next three years.
Once Comtec has acquired the company, it plans to establish a wholly-owned subsidiary to be active in the Chinese residential rooftop solar market. Forum has already strung up some partnerships with Chinese companies for the distribution of residential PV within the country.
At the start of year, Comtec announced plans to expand into the downstream solar business, however, it was scant with details. To fund the expansion, the company was looking to raise some USD 78.8 million. Presumably, the acquisition of Forum is plan of Comtec’s strategy to expand into the downstream market.