Feb 27 2010
LDK Solar, a leading multicrystalline solar wafer manufacturer, has signed an agreement with Best Solar to acquire its crystalline module manufacturing facility for $21.5 million in cash.
Executive Vice President of LDK Solar, Jack Lai, said that the company’s position will be significantly strengthened in the downstream photovoltaic market. Jack Lai, who is also Secretary and Chief Financial Officer of LDK Solar, said that the company has been purchasing solar modules from Best Solar to meet it requirements for the last three quarters. Lai further said the acquisition will help the company to realize cost efficiencies and it is a significant step toward vertical integration. The company’s competitiveness in the solar market will also be further strengthened, Lai said.
The controlling shareholder of LDK Solar, LDK New Energy Holding Limited, fully owns Best Solar. The agreement has been approved by both the companies fixed on an arms-length basis using the fair market value of the assets acquired. Third party valuer has performed the fair market value assessment, which was approved by the audit committee and management team of LDK Solar. After the transaction is completed, Best Solar will not engage and compete in the module business with LDK Solar.
Source: http://www.ldksolar.com