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October 9, 2013

Shunfeng bids for Wuxi Suntech acquisition

Jiangsu Shunfeng Photovoltaic Technology, a wholly-owned subsidiary of Shunfeng Photovoltaic International, has submitted a bid to acquire an equity stake in Wuxi Suntech Power, a wholly-owned subsidiary of Suntech Power Holdings.

By admin-demo

Chinese solar

Jiangsu Shunfeng Photovoltaic Technology, a wholly-owned subsidiary of Shunfeng Photovoltaic International, has submitted a bid to acquire an equity stake in Wuxi Suntech Power, a wholly-owned subsidiary of Suntech Power Holdings.

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As part of its bid, Shunfeng has deposited with the debt administrator of Wuxi Suntech, a manufacturer of solar cells and modules, an amount of around RMB500m ($81.7m), which is refundable if the bid fails.

Pursuant to the bid, the company has also made a proposal of debt restructuring of Wuxi Suntech, which was forced into bankruptcy on 20 March 2013 following its parent company Suntech defaulted on $541m of bonds.

The company’s motive behind the bid is to further raise its production capabilities of solar cells and modules, which in turn would strengthen its expansion into the solar power plant operations.

If the bid turns successful, the company is likely to formally sign a sale and purchase agreement with the administrator and will be required to clear Wuxi Suntech’s debt, which is estimated to be around $1.75bn, as well as finance up to $327m to sustain operations.

The company may opt for various means to finance the potential transaction that include debt financing, capital raising, joint-venture or partnership arrangement, internal resources or a combination of them.

According to sources close to Reuters, a consortium of the local government-owned company Wuxi Guolian and GCL-Poly is also said to have bid for the acquisition of Wuxi Suntech, while the administrator is currently reviewing both the bids and will finalise the winner shortly.


Image: Shunfeng intends to acquire Wuxi Suntech. Photo: courtesy of Freedigitalphotos.

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IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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