Sunpower unit acquires steam outfit in China

Sunpower Group said after Friday trading close that it has entered into a cooperative agreement through a wholly owned subsidiary with Xintai Zhengda Thermoelectric Co Ltd to acquire no less than 70 per cent equity in a China-incorporated outfit involved in supplying steam, heat and electricity.

Sunpower said that the undisclosed Chinese outfit has a registered capital of 10 million yuan (S$2 million). The outfit has also been ordered by the local government to relocate and build its new facilities in Xintai Economic Development Zone during the 13th Five-Year-Plan period (2016-2020).

The consideration for the proposed acquisition will be based on an appraisal report by an independent valuer that is recognised by Sunpower, the counter-parties to the deal and the local State-owned Assets Supervision and Administration Commission.

Sunpower will draw on its internal resources and net proceeds from the convertible bonds issued on March 3 to fund the acquisition.

Sunpower said that the proposed acquisition will contribute to the ongoing expansion of its existing green investments business.