Yingli Green Energy Holding Company Limited has completed acquisition of Cyber Power Group Limited, a development-stage solar-grade polysilicon producer, for approximately US$77.6 million. Yingli, the vertically integrated PV product manufacturer, marks its first venture into the polysilicon production industry with this acquisition, which was funded by available cash on hand and commitment to issue senior secured convertible notes due 2012 to Trustbridge Partners II, L.P.
Yingli purchased 100% of the issued and outstanding share capital of Cyber Power, through Fine Silicon Co., Ltd., its principal operating subsidiary in China. Yingli entered into a share purchase agreement with Grand Avenue Group Limited, which is controlled by Yingli’s CEO Liansheng Miao. Of the overall US$77.6 million cost, US$25 million had been paid in November 2008, with the final cost of the acquisition determined incorporating a 4% discount on Cyber Power’s overall value as of November 30th, 2008.
It is expected that Yingli will use the recent acquisition to secure its polysilicon supply for its own PV products in the future. Prior to the acquisition, Cyber Power had planned to begin polysilicon production in the second quarter of 2009.
Zongwei Li, Yingli’s CFO, said, “We are excited to take this first step in expanding Yingli Green Energy’s manufacturing capability to include solar-grade polysilicon. We believe having a fully integrated business model will not only help us secure high quality polysilicon to meet our customers’ demands for top quality PV products but also help control our silicon costs and improve our margins.”