Deal gives mainland firm a foothold in the world's largest solar cell market
Suntech Power Holdings, the largest Chinese solar-cell maker by market value, has agreed to acquire a Japanese rival for up to US$300 million in an attempt to expand into the world's largest solar power market.
Suntech said yesterday that it would buy two-thirds of MSK Corp for US$107 million in cash by next month.
It will also pay between US$53 million and US$193 million in shares by the end of next year for all or a substantial part of MSK's remaining interest, depending on the Japanese firm's ability to reach a certain unspecified revenue target.
Suntech will seek a one-year bridging loan to fund the transaction. Credit Suisse, which arranged Suntech's New York initial public offering last year, is the sole financial adviser for the mainland company.
MSK, which makes photovoltaic modules that convert sunlight into electricity, had an annual production capacity of about 200 MW last year. It has about 260 employees.
'While Japan is the world's largest single market for [these] modules, it is also one of the most difficult markets for foreign players to enter,' Suntech chairman and chief executive Zhengrong Shi said.