China Solar wraps up buy of 51% in Chengdu Yuncheng Biological
Sep 4, 2012 - China Solar Energy Holdings Ltd (HKG:0155) said it had concluded today the previously announced purchase of a 51% interest in Chengdu Yuncheng Biological Technology for HKD 100 million (USD 13m/EUR 10.2m).
The deal is in line with China Solar's plan to expand its solar offering to the agriculture sector.
In mid-August the company agreed to issue 2.1 billion of stock and a HKD-25.3-million interest-free promissory note to the vendors. The deal will give the latter a 14.3% stake in China Solar.
The target company is active in organic livestock farming and acer truncatum cultivation. It is mulling over a project to install a thin-film solar agricultural greenhouse in China’s Chengdu province. The feasibility study on that plan has already been completed. According to China Solar the acquisition will bring synergies and improve the company’s growth and profitability in the future, as it has been developing the solar agricultural greenhouse idea for a while.