PV module encapsulant material supplier STR Holdings has agreed to sell 51% of its stake to Chinese PV developer Zhenfa Energy Group.
Zhenfa, which installed approximately 1.3GW of PV systems in 2013, acquired STR’s majority stake for around US$21.7 million. Zhenfa will pay US$1.60 per share, while also funding a special dividend of US$0.85 per share for STR stockholders that are not associated with Zhenfa.
Robert S. Yorgensen, president and chief executive officer at STR, said: “Zhenfa is a very highly regarded, vertically integrated enterprise in the burgeoning solar utility systems market. Having seen some of their installations first hand, I can attest to the large scale and scope of their endeavors and understand their desire to purchase modules utilizing components that maximize quality and protect their long-term investments. Zhenfa recognizes that a module is only as good as the encapsulant within and that STR products offer exceptional performance and service life. We expect our alliance with Zhenfa to significantly strengthen our existing relationships with many of the top-tier Chinese module manufacturers, and to help create important new relationships for STR within the world's largest solar module manufacturing market.”
Earlier this year, STR revealed that its first quarter 2014 sales totaled US$9.3 million, a 40% increase over the previous quarter but a decline of 17% from the same period a year ago.
The deal is expected to be completed during the fourth quarter of 2014.