Chinese PV manufacturer Shunfeng Photovoltaic International has revealed it is bidding for Wuxi Suntech, the main manufacturing unit of debt-ridden Suntech Power Holdings.
In a filing yesterday to the Hong Kong stock exchange, on which it is listed, Shunfeng said it had made a bid for an equity stake in the unit and had put forward a plan to restructure Wuxi's US$2 billion debt.
Shunfeng has paid Wuxi a reported RMB500 million (US$82 million) deposit for the bid, which is refundable if the bid fails.
“The possible acquisition is in line with the group's expansion strategy and will enable the group to further strengthen its production capabilities of solar cells and modules,” Shunfeng said in a statement.
Suntech is one of the highest profile victims of the recent global overcapacity in PV modules.
Earlier this year, when Suntech Power Holdings defaulted on a US$541 million convertible bond, Wuxi was forced into bankruptcy.
Recent reports said the company was in negotiations with a number of rivals over possible merger deals.
Unconfirmed reports in local press yesterday also suggested Wuxi has received a second bid from a consortium comprising Wuxi Guolian, the investment arm of the city government of Wuxi, and polysilicon producer GCL-Poly.
Suntech’s shares on the New York stock exchange rose 5.6% yesterday on the back of the news.