Sep 12, 2014 - US solar installer SolarCity Corp (NASDAQ:SCTY), which agreed to acquire Silevo Inc in June, has now amended some of the deal’s terms, mainly regarding the payable earn-out consideration.
SolarCity previously announced it would acquire the solar module maker for up to USD 350 million (EUR 271m) in own stock, including a maximum of USD 150 million to be paid once certain milestones are met.
In a Thursday filing with the US Securities and Exchange Commission (SEC), SolarCity said it had agreed with the target to pay portions of the agreed consideration in cash, instead of stock, to holders of Silevo options residing outside of the country. The company noted that there is no change to the actual amount payable as part of the deal.
Moreover, SolarCity has made changes to the milestones, scope and timelines related to the three earn-out payments. The current shareholders of Silevo will get the first USD-50-million such payment if, by the end of 2015, the business completes a new research and development (R&D) plant in the US capable of volume production with target efficiency requirements. The second payment will be made if, by the end of 2017, Silevo meets the latter condition and also commissions a 1-GW photovoltaics (PVs) factory. The final USD-50-million payment will be made if the business achieves volume production with target cost and efficiency requirements from the particular PV production facility by December 31, 2017.
SolarCity unveiled the plans for the construction of the 1-GW PV factory in June, saying it will use the target’s technology. Silevo, whose manufacturing operations are based in China, is betting on the tunneling junction cell architecture to achieve high efficiencies and low cost.
(USD 1.0 = EUR 0.773)
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