Xi’an Longi Silicon to buy 85% in PV products maker

Oct 23, 2014 - Chinese firm Xi’an Longi Silicon Materials Co Ltd (SHA:601012) said today it will acquire an 85% stake in local solar company Zhejiang Leye Photovoltaic Science & Technology Co Ltd for CNY 46.1 million (USD 7.5m/EUR 6m).

The buyer makes monocrystalline ingot and wafer, while the target company is manufacturing solar photovoltaic (PV) power generation equipment, including cells, modules, lights and systems. Xi’an Longi Silicon noted that the investment is part of its long-term development strategy to expand its product offering and become more competitive.

Taking a majority stake in Zhejiang Leye Photovoltaic will also bring Xi’an Longi Silicon closer to its 200-MW production capacity target.

The vendors in the deal are Zhejiang Leye’s two shareholders. The bigger portion of 74.19% will be acquired from Ye Zhiqing, who currently holds 89.19%. At the same time Xi’an Longi Siliconand will also acquire Wu Hongling's entire 10.81% stake.

The proposed acquisition has been approved by Xi’an Longi Silicon’s board of directors and is now subject to shareholders approval. In addition, Zhejiang Leye PV is currently undergoing an evaluation by an auditing firm, which the buyer has hired.

(CNY 1 = USD 0.163/EUR 0.129)

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