San Francisco, November 17, 2010 — Solar panel maker Suntech Power Holdings Co. is in the process of acquiring 375MW of ingot and wafer slicing capacity in China.
The wafer manufacturing capacity is being spun off from a unit of Glory Silicon Technology Investments, in which Suntech holds an equity investment.
Suntech will acquire the remaining 70 percent shares of the capacity for a total cash consideration of about $127 million, which is the total consideration after an offset of about $80 million of liabilities owed to Suntech.
Post the acquisition, Suntech will own 100 percent of the 375 MW of wafer manufacturing capacity in China. Suntech will take operational control in the fourth quarter of 2010 and it is expected to be immediately accretive to earnings.
Over the next 12 months, the company will expand internal wafer capacity to 25 percent to 50 percent of its total solar cell and module capacity.