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China's JA Solar agrees to go private in USD-362m transaction

Solar array. Author: U.S. Department of Agriculture .

November 17 (Renewables Now) - A group led by the chairman and CEO of JA Solar Holdings Co Ltd (NASDAQ:JASO) has signed a definitive agreement to take over and delist the Chinese solar products maker at an equity value of USD 362 million (EUR 307m).

Under the terms of the deal, each JA Solar ordinary share will be cancelled and cease to exist in exchange for the right to receive USD 1.51 in cash without interest. The holders of American depositary shares (ADSs), each representing five shares, will get USD 7.55 apiece in cash without interest.

Announcing the deal on Friday, JA Solar said in a statement that the agreed price is a premium of 18.2% to the closing price of the company on June 5, 2017, which is the last trading day before it unveiled a receipt of a revised going-private proposal.

Jinglong Group Co Ltd, a British Virgin Islands company of which JA Solar’s CEO Baofang Jin is the sole director, and existing stockholders Chin Tien Huang, Chi Fung Wong and Pak Wai Wong, will roll over their JA Solar shares in the transaction. Together, the buyer group and the rollover stockholders hold 25.7% of the voting rights in JA Solar.

The transaction is pending shareholder clearance and is expected to close during the first quarter of 2018. The buyer group plans to fund the acquisition with a mix of debt and equity. It has agreed a USD-160-million loan with CSI Finance Ltd, the Singapore branch of Credit Suisse AG and some other parties.

Another Chinese photovoltaic (PV) modules maker, Trina Solar Ltd, went private in late 2016 after its chairman and chief executive officer made a proposal, together with a unit of Industrial Bank Co Ltd (SHA:601166), to acquire and delist it.

(USD 1.0 = EUR 0.848)

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