In an a deal which confirms to many that consolidation and capitulation is occurring in the Chinese PV market, tier 2 PV manufacturer, Goldpoly New Energy Holding has acquired China Merchants New Energy (CMNEG) in a deal valued at HK$2.12 billion (US$273 million).
The non-cash deal (stock & bonds) includes a string of other shareholders in either company, such as GCL-Poly as well as Chinese state owned enterprises, such as Telesun.
Goldpoly noted in a Hong Kong stock market statement, issued Friday, December 18, that it was concerned about the continued overcapacity in the PV industry and declining prices, while seeing the rapidly growing opportunities in the downstream PV installation market, especially in China.
As a result, Goldpoly is tapping into CMNEG’s PV project business and pipeline. CMNEG is said to have developed and or acquired several multi-megawatt PV projects and had entered into binding agreements with a host of deals that equated to a potential pipeline of approximately 5GW spanning to the end of 2016.
Goldpoly already owned 7.83% of China Merchants New Energy Holdings, which in turn is 17.39% owned by Ease Soar (a GCL-Poly subsidiary), approximately 8.69% by China Green, approximately 8.69% by Talesun, 5.22% by Hyatt Servicing and approximately 4.35% by Sino Arena.
