The renewable energy manufacturer + project developer SPI Solar just announced that one of its subsidiaries, SPI China Limited, has entered into a definitive share purchase agreement involving the acquisition of 80% of the outstanding capital stock of Solar Juice — one of the top solar photovoltaic (PV) wholesale distribution businesses in Australia (during 2013 and 2014, by wholesale volume).
As per the terms of the definitive share purchase agreement, SPI Solar will purchase 80% of the outstanding capital stock of Solar Juice from entities controlled by Solar Juices’s shareholders — for a total sum of, roughly, $25.5 million in SPI Solar common stock. This new stock purchase agreement is still subject to a number of customary closing conditions.
The cofounder of Solar Juice, Andrew Burgess, commented on the agreement: “We have spent over 5 years building Solar Juice into the leading PV wholesale distribution business in Australia. Given the huge potential we see in the Australia PV market in the coming years, we felt the timing was right for Solar Juice to seek additional resources to capture this once-in-a-lifetime opportunity. We think we have found the ideal partner in SPI, which has demonstrated a remarkable track record of growth since last year.”
Fellow cofounder Rami Fedda commented as well: “We are pleased to partner with SPI, and have already identified a number of areas where the combination of our organizations can leverage more opportunities than as standalone businesses.”
While the residential solar sector in Australia has remained the dominant one, the commercial sector has been growing in recent years — with a near doubling in size in 2013, making SPI Solar’s decision to enter this agreement an interesting one.
“We are particularly excited to announce this landmark transaction with Solar Juice,” stated Xiaofeng Peng, Chairman of SPI. “We have been evaluating for some time the best entry point into the very promising Australia market, and we are confident this transaction gives SPI the strongest local platform to address this tremendous market opportunity. We feel this is truly a win-win arrangement for both companies, and we look forward to working closely with our new partners and shareholders at Solar Juice.”
Image Credit: SPI Solar
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