Germany-based SMA Solar Technology has concluded a contract in Shanghai about the acquisition of a majority stake of 72.5% in Jiangsu Zeversolar New Energy, a China-based PV inverter manufacturer. Zeversolar offers products specially tailored to the requirements of the China solar market. With this joint venture, SMA expects to secure access to the growing China market and to strategically consolidate its position as a global market leader.
"Over the next few years, China will become the largest solar market worldwide. Up to now, SMA did not have access to this market due to local particularities. For this reason, our majority shareholding in Zeversolar is strategically highly relevant for SMA," said SMA speaker of the managing board, Pierre-Pascal Urbon.
SMA plans to use the joint venture primarily to aid comprehensive operation in the China market. Through this transaction SMA can optimally meet local requirements. "With this joint venture SMA is gaining access to products specifically tailored to the unique needs of the China market. As a leading manufacturer in China, Zeversolar is also in contact with the prevailing customers and decision-makers in the energy industry. The firm will be serving the China market via the modern production site in Yangzhong and are also in a position to quickly increase capacity through already established processes," said Urbon.
Yulong Chen, CEO at Zeversolar, added, "Zeversolar has managed to successfully position the firm in the China market over the course of several years. With this joint venture, Zeversolar is creating a stable future for the company and will be able to implement our growth plans even faster. With SMA's experience added to our roster, Zeversolar will be able to advise our China-based customers in the energy industry when it comes to the ever more important question of grid integration and, thus, set ourselves apart from our competitors," said Chen.
Zeversolar's enterprise value based on SMA's stake of 72.5% is CNY319 million (US$51 million) from which net liabilities are deducted in order to determine the purchase price, according to SMA. The purchase is financed with cash on hand. The economic start of the joint venture is planned for January 1, 2013. The transaction is still subject to approval by government authorities and the responsible anti-trust offices.
