Chinese firm LDK Solar Co. Ltd. has finalized its acquisition of a 70 percent interest in Rosevilles Solar Power Inc. for about $33 million, the companies announced Thursday.
The purchase strengthens SPIs balance sheet and brings the company much-needed financing. With the purchase, SPI OTCBB: SOPW exited the manufacturing business and is now strictly a project developer.
For buyer LDK Solar NYSE: LDK , the deal expands its efforts to sell solar modules in North America and build manufacturing plants in Ontario, Canada and the United States.
The stock purchase agreement called for SPI to first issue new shares to LDK valued at slightly less than 25 cent a share. That involved 42.8 million shares of common stock close to 45 percent of the companys outstanding common stock for a purchase price of $10.7 million.
The companies have now finalized the transaction with a second payment of approximately $23 million. The agreement had called for the subsequent sale of 20 million share of Series A preferred stock for the roughly $23 million.
We are very pleased to have this transaction concluded, Xiaofeng Peng, chairman and chief executive officer for LDK Solar, said in a statement. SPI provides a strong strategic complement to our downstream vertical integration opportunities and provides LDK Solar and SPI the opportunities to jointly explore opening manufacturing operations in the U.S. to further enhance SPIs competitive advantage in North America.