Shunfeng snaps up Solarstrom
Shunfeng Photovoltaic International (SPI) has acquired German company SAG Solarstrom for a reported €65m ($85.4m).
SAG Solarstrom, which builds and operates PV plants, filed for insolvency in December last year after being unable to make a debt payment of €20m.
However, once the acquisition is completed, it will be withdrawn from the stock exchange and liquidated during the further course of insolvency proceedings.
SPI's strategy for growth at the Freiburg-based company will see jobs being created and a relocation to nearby Merzhausen, southwest Germany, in mid-2016, as its new European headquarters.
Creditors can expect to receive up to 50% of its insolvency assets. "Depending on the actual result, the quota might also be considerably below or above this value," said SAG Solarstrom insolvency administrator Jörg Nerlich.
The deal comes days after the Chinese PV group released positive first-half financials.
SPI will change its identity to Shunfeng International Clean Energy. After acquiring Wuxi Suntech earlier this year, SPI expects to achieve a total manufacturing capacity of 2.2GW of cells and 2.4GW of modules in 2014.
First-half revenue soared by 608% year-on-year, to 2.95bn yuan, while gross profit topped 750m yuan, up from 51m yuan. SPI posted a net profit of 504m yuan, reversing a 673m yuan loss.