China Technology Development Group Corporation (CTDC) (NASDAQ: CTDC) announced an agreement to acquire Linsun Renewable Energy Corporation Limited (LSR) from Goldpoly Company Limited.
The transaction price is US$3.2 million, payable in shares of CTDC’s common stock at a price of US$3.01 per share.
LSP is a crystalline photovoltaic (PV) modules manufacturer with annual production capacity of about 65 megawatts (MW), located at Jinjiang Economic Development Zone in Fujian Province of China. LSP’s PV modules have been accredited with TÜV certificate and exported to European markets, including Germany, Italy and Czech Republic, etc.
"Upon completion, we plan to expand LSP’s annual capacity to 100MW. Together with existing capacity of China Merchants Zhangzhou Development Zone Trendar Solar Tech Ltd. – another subsidiary of CTDC, our annual capacity of crystalline PV modules will be increased to 165MW, which will be ahead of our target capacity of 150 MW by the end of 2011," said Mr. Alan Li, Chairman and CEO of CTDC. "Moreover, the acquisition will help us form a close relationship with Goldpoly, an upstream PV cells supplier, to ensure sufficient supply of raw material."
In a separate release, the two companies announced a long-term supply agreement for solar cells.
Goldpoly will provide not less than 100 MW per year from beginning of 2011 at the "lowest price in the market" and CTDC agreed to preferentially purchase the solar cells from Goldpoly as its major supplier.
Established in 1995, CTDC has been listed on the Nasdaq Market since 1996. CTDC’s major shareholder is China Merchants Group, a state-owned conglomerate in China.
Goldpoly is a company incorporated in BVI with limited liability. Through its subsidiary–Goldpoly (Quanzhou) Science & Technology Industry Co. Ltd., Goldpoly is principally engaged in the production and sales of monocrystalline and polycrystalline solar cells. Goldpoly is a wholly-owned subsidiary of Time Infrastructure Holdings Limited (00686.HK).
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