To Tap the fastest growing Solar Market, global Solar inverter giant, SMA Solar (link) has acquired 72.5% stake in China based Jiangsu Zeversolar New Energy Co., Ltd. (link), which is a Major Solar inverter Manufacturer in China.
SMA Speaker of the Managing Board, Pierre-Pascal Urbon said "Over the next few years, China will become the largest photovoltaic
market worldwide. Up to now, we did not have access to this market due
to local particularities. For this reason, our majority shareholding in
Zeversolar is strategically highly relevant for us. We are taking
advantage of this historic chance to successfully anchor SMA in a young
growth market and to further establish our position as global market
leader"
SMA plans to use the joint venture primarily to aid comprehensive
operation in the Chinese market. Through this transaction SMA can
optimally meet local requirements. “With this joint venture SMA is
gaining access to products specifically tailored to the unique needs of
the Chinese market. As a leading manufacturer in China, Zeversolar is
also in contact with the prevailing customers and decision-makers in the
energy industry. We will be serving the Chinese market via the modern
production site in Yangzhong and are also in a position to quickly
increase capacity through already established processes,” says
Pierre-Pascal Urbon. It has always been SMA’s philosophy to carry out
production locally should it be required by the conditions on-site.
“Accordingly, we set up production sites in North America early on to
establish our market leadership in the region,” explains Pierre-Pascal
Urbon.
Chief Executive Officer at Zeversolar, Chen Yulong, is also very
pleased with the signing of the contract: “We have managed to
successfully position Zeversolar in the Chinese market over the course
of several years. With this joint venture, we are creating a stable
future for the company and will be able to implement our growth plans
even faster. With SMA’s experience added to our roster, we will be able
to advise our Chinese customers in the energy industry when it comes to
the ever more important question of grid integration and, thus, set
ourselves apart from our competitors. We are very happy that our
management board stands in full support of the transaction and will play
a major role in the further development of Zeversolar,” says Chen
Yulong.
Zeversolar’s enterprise value based on SMA’s stake of 72,5 percent is
CNY 319 million (approx. €40 million) from which net liabilities are
deducted in order to determine the purchase price. The purchase is
financed with cash on hand. The economic start of the joint venture is
planned for January 1, 2013. The transaction is still subject to
approval by Chinese government authorities and the responsible
anti-trust offices. E. J. McKay acted as the financial advisor, CMS as
the legal advisor, and Deloitte & Touche as the financial and tax
due diligence consultant to SMA; Zhenghan acted as the legal advisor to
Zeversolar.
Article Source: SMA Solar Press Release
Image Source: Zever Solar
