SPI Solar to buy roofing co Shanghai All-Zip for USD 54m

Oct 30, 2014 - US firm SPI Solar (OTCMKTS:SOPW) said Wednesday it plans to purchase all of Shanghai All-Zip Roofing System Group Co Ltd for around CNY 330 million (USD 54m/EUR 42.7m) in stock.

The transaction is in line with the buyer’s strategy to expans in the distributed generation (DG) solar industry, SPI chairman Xiaofeng Peng explained. “All-Zip Roofing’s dominance in Eastern China, one of the fastest growing markets for DG, will increase our access to an especially promising market,” he said.

All-Zip Roofing provides roofing services, which include energy conservation and environmental protection. In addition, it has a number of patented solutions in the segment. Prior to the acquisition, it will undergo reorganisation at home and abroad.

Photovoltaic (PV) projects developer SPI’s unit Xinwei Solar Power Engineering (Suzhou) Co Ltd has signed an acquisition agreement with the target company and its five shareholders. The sum to be paid is equal to 11 times All-Zip Roofing’s earnings, according to its 2014 audited financial reports. The SPI common shares to be received by the vendors have been priced at USD 2.38 (EUR 1.88) apiece.

The acquisition is expected to conclude within 10 working days after all conditions have been met.

SPI Solar is majority-owned by China's LDK Solar Co Ltd.

(CNY 1.0 = USD 0.164/EUR 0.128)
(USD 1.0 = EUR 0.791)

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