China Technology Development Group (CTDC) has begun the process for the purchase of Linsun Renewable Energy (LSP). CTDC entered the stock purchase agreement (SPA) with Linsun and its stockholders, Goldpoly and Liao-Lin Hsiang for the complete equity acquisition of Linsun and its wholly owned subsidiary, Linsun Power Technology under a US$3.2 million consideration. The agreement will be payable in shares of CTDC’s common stock, which resides at US$3.01 per share. Once the purchase is finalized, Linsun will be a wholly-owned subsidiary of CTDC.
“The acquisition of LSP will be achieving a significant milestone towards our development strategy in solar energy industry. Upon completion, we plan to expand LSP's annual capacity to 100MW. Together with existing capacity of China Merchants Zhangzhou Development Zone Trendar Solar Tech Ltd. – another subsidiary of CTDC, our annual capacity of crystalline PV modules will be increased to 165MW, which will be ahead of our target capacity of 150MW by the end of 2011,” said Alan Li, chairman and CEO of CTDC. “Moreover, the acquisition will help us form a close relationship with Goldpoly, an upstream PV cells supplier, to ensure sufficient supply of raw material. Looking forward, we will leverage the synergies created by two companies to develop the Xiamen Bay into a renowned PV production base, so as to maximize our shareholders' value.”
LSP currently has an annual production capacity of its crystalline PV modules that hovers around 65MW. The company’s PV modules have received TÜV accreditation and have been delivered to various European countries.