Jan 11 2010
ReneSola has decided to discontinue with its acquisition of Dynamic Green Energy. ReneSola is a leading worldwide manufacturer of solar wafers and producer of solar power products. ReneSola and Dynamic Green, which functions through its wholly owned subsidiary unit Jiawei Solarchina along with other Chinese operating subsidiary units, had announced a share purchase agreement on 23 September, 2009. ReneSola agreed to buy all the Dynamic Green’s shares through this share purchase agreement.
The boards of directors from both the companies have approved the acquisition and the share purchase agreement. The local government agencies, where an operating subsidiary unit of Jiawei is located, have not approved the transaction. The sale of shares of Dynamic Green requires appropriate government approvals as stated by the terms of an agreement between Jiawei and the local government.
The share purchase agreement between ReneSola and Dynamic Green indicated the possibility of terminating the transaction without penalty if Jiawei failed to obtain appropriate government approvals by 31 December, 2009. ReneSola decided to terminate the discussions associated with the acquisition after careful consideration.
Li Xianshou, Chief Executive Officer of ReneSola, remarked that the company’s downstream strategy continues to be intact though the Jiawei acquisition was terminated. The company continues to experience an organic growth in its JC Solar cell and module business. Xianshou further remarked that the company is in a firm position to leverage its wafer manufacturing capabilities and enhance its customer relationships to rapidly expand its downstream business. ReneSola expects substantial bottom-line and top-line growth from its downstream business in the year 2010.
Source: http://www.renesola.com/