Shares in Shunfeng Photovoltaic Technology have been suspended as the completion of a “significant acquisition”, thought to be for Suntech Wuxi, is completed.
In a statement to the Hong Kong stock exchange yesterday, Shunfeng confirmed that trading would be halted with immediate effect.
Sources told Reuters that the terms of a deal for Suntech Wuxi had been agreed.
Shares in Suntech Power Holdings fell on the news.
Shunfeng confirmed it had made a bid for the embattled manufacturing unit of Suntech Power Holdings earlier this year and revealed it had paid a US$82 million refundable deposit.
Shunfeng has also announced the release of 400,000,000 new shares worth US$144 million to be distributed among six “Placees”. It is unknown if the move is related to the sale.
Earlier this year, parent company Suntech Power Group defaulted on a US$541 million convertible bond forcing Suntech Wuxi into bankruptcy proceedings.
The other bidder for the company was the Wuxi Guolian Group, a commercial unit of the local government.
Jifan Gao, CEO of module manufacturer Trina Solar, recently claimed that local government interference was getting in the way of the natural process of consolidation in China’s solar industry.