US Ascent Solar sells stake, to form JV with China's TFG Radiant

Aug 17, 2011 - US thin-film solar module maker Ascent Solar Technologies (NASDAQ:ASTI) on Monday said it had divested a stake and agreed to form a join venture with China's TFG Radiant Group under a long-term strategic partnership deal.

The total value of the partnership agreement is USD 450 million (EUR 311.7m), Ascent said.

TFG Radiant has bought 6.4 million Ascent shares at a price of USD 1.15 per share, which is a premium of 56% to the closing price of Ascent stock on August 12. TFG would also receive the right to buy additional 9.5 million shares at USD 1.55 apiece, subject to certain conditions, Ascent said.

Under the joint development agreement, TFG will build a photovoltaic (PV) module factory in China at an estimated cost of USD 165 million and an initial production capacity of 100 MW a year, which will be based on the copper, indium, gallium, diselenide (CIGS) PV module production technology exclusively licensed from Ascent for East Asia. Ascent will assist in the plant's installation and own a stake in the project. Ascent will also receive royalty payments on sales from the plant, license fees and non-recurring engineering fees from TFG.

TFG is a joint venture of China's property and construction firm Radiant Group and Singapore's investment firm Tertius Financial Group.

(USD 1 = EUR 0.693)

Choose your newsletter by Renewables Now. Join for free!