According to Bloomberg, JA Solar Holdings advised that it had issued 30.9 million ordinary shares in order to buy Chinese monocrystalline wafer supplier Solar Silicon Valley Electronic Science and Technology. The company cited that the increase in capacity would not only lead to a larger wafer capacity, but help it cut costs and improve profitability.
Bloomberg noted that when JA Solar originally announced the deal in July, the company stated that it would issue the 30.9 million shares at US$5.825 each at the time of closing; a 5% premium over the price of its American depositary receipts the day before the purchase was revealed, making Solar Silicon worth US$180 million.
JA Solar was able to complete the acquisition of Solar Silicon Valley by purchasing its parent company, Silver Age Holdings, which is 70% owned by the Jinglong Group and controlled by JA Solar’s chairman Baofang Jin.
