Tongwei to accumulate Runergy – pv journal Worldwide

Tongwei, a vertically built-in photo voltaic producer in Chuna, signed a “capital improve intention settlement” with China-based module producer Runergy, its main shareholders, and Chinese state-owned funding administration firm Jiangsu Yueda. Group.

The deal outlines a multi-step acquisition course of. Initially, Jiangsu Yueda will inject CNY 1 billion ($139.7 million) into Runergy. Tongwei will then do due diligence, auditing, and valuation earlier than the capital improve is accomplished, which suggests the acquisition of the corporate.

The plan contains utilizing both self-raised or borrowed funds to put money into Runergy and purchase again the shares acquired by Jiangsu Yueda, which goals to safe not less than 51% of Runergy’s fairness. The complete acquisition price is capped at CNY 5 billion.

Runergy, a significant impartial photo voltaic cell producer, ranked among the many high three international photo voltaic cell suppliers from 2020 to 2022 and positioned within the high 5 in 2023, in accordance with InfoLink Consulting. Although Runergy is increasing into upstream and downstream sectors resembling polysilicon, wafers, and modules, photo voltaic cells stay its core enterprise, accounting for greater than 99% of its income from 2020 to 2022.

Runergy beforehand deliberate to boost CNY 4 billion by means of an preliminary public providing on the Shenzhen Stock Exchange’s Growth Enterprise Market (GEM) to fund capability growth and dealing capital. Despite the approval from the China Securities Regulatory Commission (CSRC) in June 2023, the corporate didn’t full the itemizing course of inside the one-year validity interval.

Due to declining costs and poor efficiency within the photovoltaic sector, the Chinese authorities and the China Photovoltaic Industry Association (CPIA) are encouraging mergers and acquisitions to advertise more healthy progress in business.