Published on September 6th, 2015 | by James Ayre1
Suntech Owner Shunfeng International Buys Majority Stake In Suniva
September 6th, 2015 by James Ayre
The owner of Suntech, currently one of the largest solar energy companies in the world, Shunfeng International, has acquired a majority stake in the US-based solar cell + module manufacturer Suniva, according to recent reports.
Shunfeng is now a 63% stakeholder in Suniva. Other minority stakeowners currently include: Goldman Sachs, NEA, Prelude Ventures, and Warburg Pincus.
Given that the Suntech brand is currently exposed to a cumulative duty of 54.02% (an anti-dumping tariff rate of 33.08% + a countervailing duty of 20.94%) when selling in the US, one can easily surmise the reason for the Suniva buy-in — Shunfeng will now have a better means of entering more strongly into the American market.
With regard to the details of the acquisition, Greentech Media has more:
According to a Hong Kong exchange document, “The Consideration is US$57,760,000, which is to be settled as follows: (a) the Company shall make the Cash Contribution of US$12,000,000 upon Completion; (b) for the remaining portion of the Consideration, the Company shall allot and issue 70,928,000 new Shares at the Issue Price to the Participating Stockholders.”
Suniva lost $15 million in 2014, less than the $44 million it lost in 2013, according to the same document. According to GTM Research’s PV Pulse and GTM solar analyst Jade Jones, Suniva is the No 2 US c-Si manufacturer in terms of total capacity. The investment by SFCE will allow Suniva to expand its capacity to over 400 megawatts.
It’s probably worth a reminder here that despite the events of recent history (a few years back, that is), Suntech is doing quite well right now — were it not for anti-dumping tariffs, the company/brand would most certainly be looking to gain a far greater market share in the US. With the recent majority-stake acquisition, though, that looks as though it may be unnecessary.