Shunfeng 'agrees Suntech terms'
A takeover of the insolvent main Chinese unit of solar giant Suntech by fellow PV group Shunfeng has been agreed in principle, reports from China said today.
Shunfeng will invest up to 3bn yuan ($493m) in Wuxi Suntech under the terms of a deal that must now be approved by the latter’s creditors, according to Reuters, which quoted anonymous sources.
Shunfeng first emerged as a bidder for Wuxi Suntech two weeks ago.
The sense that the situation is nearing its endgame was heightened yesterday, when Shunfeng asked that its shares were suspended on the Hong Kong Stock Exchange pending an announcement regarding a “very substantial acquisition”.
Wuxi Suntech was forced into bankruptcy in March.
Parent group Suntech is struggling to regain stability and restructure financially after defaulting on $541m worth of bonds and losing its former status as world’s biggest supplier of PV modules.