Shunfeng Photovoltaic International, a China-based maker of solar-grade crystalline silicon wafers, cells and PV modules, has reportedly obtained permission from China's authorities to acquire Suntech Power (Wuxi), the flagship subsidiary maker of China-based Suntech Power Holdings listed on the New York Stock Exchange, according to China-based solar.ofweek.com.
Suntech Power (Wuxi) is among the world's largest producers of PV modules made from crystalline silicon cells. Due to large drops in PV module price and US imposition of antitrust tariff rates on PV products made in China, Suntech Power (Wuxi) saw heavy losses and filed for bankruptcy in March 2013.
Suntech Power (Wuxi) owns many PV patents and has a total annual PV module production capacity of over 2GWp, plus R&D centers and other assets. However, the company has a total debt of CNY10.7 billion (US$1.75 billion).
According to the report, Shunfeng will invest CNY3 billion to reorganize Suntech Power (Wuxi), mainly for clearing unpaid employee salaries, taxes and debts. Then, Shunfeng will invest another CNY2-3 billion to restructure the operation of Suntech Power (Wuxi). For the takeover, Shunfeng will raise funds through a few channels, including issuance of new shares to raise HK$1.12 billion (US$144 million).
The acquisition is subject to approval from Suntech Power (Wuxi)'s creditors in China and the local court overseeing the company's restructuring, and the acquisition does not include Suntech Power Holdings, according to the report.
