Dec 14, 2011 - US solar project developer Euro Solar Parks Inc (PINK:ESLP) yesterday issued a letter of intent to buy E3 Hus AB of Sweden in a stock-for-stock deal.
E3 Hus makes prefabricated building modules for environmentally friendly residential and commercial structures.
Euro Solar Parks, which focuses on the European market, is to issue some EUR 2 million (USD 2.6m) worth of shares to acquire E3 Hus, which will become a wholly-owned subsidiary of the US company upon completion.
The deal is subject to due diligence and Euro Solar Parks injecting at closing EUR 1 million of working capital into E3 Hus to fund its growth plans. Euro Solar Parks intends to fund the working capital investment through a private capital raising.
Euro Solar Parks chief executive Steven Huynh said his company planned to add solar panels to E3 Hus' building modules that cut power consumption for heating and cooling to offer customers additional clean energy solutions. "The sale of its building modules to other European markets will be critical to its long-term success," he said.
Euro Solar Parks said the deal was expected to be completed at the end of March 2012, while cautioning that there was no certainty a final agreement would be reached.
(EUR 1.0 = USD 1.319)
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