Shunfeng of China may shed upstream solar ops for USD 760m

China-based Shunfeng International Clean Energy Ltd (HKG:1165) said Tuesday it plans to sell its photovoltaic (PV) products manufacturing division for CNY 5 billion (USD 760m/EUR 681m) and then focus on downstream solar operations.

The company and the buyer -- Asia-Pacific (China) Investment Management Ltd -- signed a non-legally binding memorandum of understanding (MoU) for the potential sale on May 31. Under the terms of the deal, the latter will take full control of Jiangsu Shunfeng Photovoltaic Technology Co Ltd, which operates Shunfeng’s manufacturing and sales of solar product business.

Jiangsu Shunfeng is the entity that bought bankrupt solar products maker Wuxi Suntech Power Co Ltd for CNY 3 billion in 2014.

“The company will continue its business on the solar power generation, solar projects development, engineering, procurement and construction (EPC) and operation and maintenance (O&M), while proactively explore and expand energy management contracting business and other clean energy technologies and applications, include light-emitting diode (LED) lightings,” executive director and CEO, Eric Luo, said. Shunfeng’s ultimate goal is to become a global leading supplier of end-to-end low-carbon and energy-saving integrated solutions.

The transaction is subject to customary conditions, including entering into a definitive agreement, conducting due diligence on the target and obtaining all necessary approvals and permits, according to the statement.

Asia-Pacific (China) Investment is wholly-owned by Kin Ming Cheng, a substantial shareholder Shunfeng.

(CNY 1.0 = USD 0.152/EUR 0.136)

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