Shunfeng Photovoltaic has announced that one of its largest shareholders has paid the RMB2.5 billion (US$412 million) balance for Suntech’s manufacturing arm.
The company said it was a “crucial step” towards the deal’s completion. A deposit of RMB500 million (US$82 million) has already been paid.
The shareholder, real estate magnate Cheng Kin Ming, has invested heavily in the photovoltaic industry in China.
“The balance of the consideration of RMB2.5 billion has been settled by Mr Cheng and that completes a crucial step of the whole acquisition,” said Zhang Yi, chairman of Shunfeng Photovoltaic.
“The restructuring plan will be completed after we further receive the approval by shareholders at the EGM. The acquisition of Wuxi Suntech will enable stable supply of solar products for the construction of solar power plants owned by Shunfeng and enhance the Group’s market position in the global solar industry,” he added.
In an interview with PV Tech earlier this month, Zhang said that once the shareholders had approved the deal for Suntech Wuxi in mid-February, they would then pay back Cheng’s money.
The liquidators of Suntech Power Holdings, Suntech Wuxi’s parent company, are investigating the sale for possible legal breaches.