Suntech
Power Holdings Co. Ltd. has acquired a minority stake in Shunda
Holdings, a China-based solar wafer manufacturer. The transaction saw
Suntech hand over $98.9 million to Actis, a private equity investor for
emerging markets, and to Waichun Investment Fund.
Suntech has also signed a 13-year silicon supply agreement with one of Shunda’s subsidiaries, which will see Shunda supply Suntech with approximately 530-540MW volume of silicon wafers per year from 2008 to 2020. The total supply over the contract lifetime is approximately 7GW.
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“This strategic investment and long-term supply agreement will be instrumental in the profitable and rapid growth of both Suntech and Shunda,” said Dr. Zhengrong Shi, Chairman and CEO, Suntech. “This is another example of how we can leverage funds raised through our recent convertible notes offering to pursue strategic investments and high volume contracts that strengthen the long-term cost structure of our business model.”
By Síle Mc Mahon