Suntech to acquire 375mw of wafer manufacturing capacity
Suntech Power today announced that it is in the process of acquiring 375MW of ingot and wafer slicing capacity in China.
The wafer manufacturing capacity is being spun off from a subsidiary of Glory Silicon Technology Investments (Hong Kong) Limited, in which Suntech holds an equity investment. Suntech will acquire the remaining 70% shares of the capacity for a total cash consideration of approximately $127 million, which is the total consideration after an offset of approximately $80 million of liabilities owed to Suntech. Post the acquisition, Suntech will own 100% of the 375MW of wafer manufacturing capacity in China. Suntech will take operational control in the fourth quarter of 2010 and it is expected to be immediately accretive to earnings.