ReneSola and Dynamic Green, which operates through its subsidiary Jiawei Solarchina (Jiawei) and other Chinese operating subsidiaries, have revealed a share purchase agreement on September 23, 2009 under which ReneSola agreed to acquire 100% of the shares of Dynamic Green, subject to customary closing conditions.
While the acquisition and share purchase agreement were approved by board of directors of both the companies, the transaction has not been approved by local government agencies where an operating subsidiary of Jiawei is located. According to the terms of an agreement between Jiawei and the local government, the sale of shares of Dynamic Green requires relevant government approvals.
ReneSola said that, as indicated in the share purchase agreement between ReneSola and Dynamic Green, the transaction could be terminated without penalty if Jiawei did not obtain the relevant government approvals by December 31, 2009.
Li Xianshou, CEO of ReneSola, said: “Despite the termination of the Jiawei acquisition, ReneSola’s downstream strategy remains intact and we continue to witness impressive organic growth in our JC Solar cell and module business. We are still in a strong position to leverage our wafer manufacturing capabilities and deep customer relationships to quickly expand our downstream business. We expect to see significant top-line and bottom-line growth from our downstream business in 2010.”
