Solargiga Energy Holdings has begun the process for acquiring Sino Light Investments by entering into a sales and purchase agreement with the company. Solargiga has conditionally agreed to buy 100% of Sino Light’s issued shares at a consideration of HK$835,200,000. This total amount will be completed in full once convertible bonds, at a conversion price of HK$1.92 per conversion share, are completed and will total 435,000,000 conversion shares issued.
Solargiga has decided to pursue the issuance of convertible bonds for consideration of the purchase as it will not significantly demand withdrawing from the company’s cash resources. The final approval for the issue of the consideration shares lies with the shareholder’s who will make their decision during Solargiga’s extraordinary general meeting.
Commenting on the acquisition, Hsu You Yuan, CEO and executive director of Solargiga, said, “The Company proposed the acquisition of Sino Light with an aim to accelerate its intended downstream business developments in the photovoltaic industry. The acquisition will enable the Group to secure a reliable source of silicon solar cells for its module business and improve the operational efficiency of the Group’s module business. The acquisition can also allow us to understand the downstream customers’ demand, so as to strengthen new product research and development of solar silicon ingots and wafers as well as promptly develop new products which can satisfy customers’ requirements. Therefore, the acquisition is expected to bring synergy between the new business and the Group’s existing business of wafer and ingot manufacturing, which will benefit the Group in the long run. We believe that the acquisition is in line with the Group’s plan of focusing the development of its solar silicon ingots and wafers from application angle through developing downstream business. It will also enable the Group to further diversify its source of revenue and broaden its opportunities to cooperate with well-established enterprises along the photovoltaic value chain. Looking forward, we will continue to seek new opportunities for business development and strive to maintain sustainable growth to reward our shareholders.”
Sino Light possesses all the issued share capital of Jinzhou Huachang Photovoltaic Technology, which manufactures silicon solar cells. Its current annual production capacity lies at 100MW, but after a planned expansion is completed by the end of this year, production capacity should be raised to 200MW.