Solar panel maker Shunfeng bids for Suntech

Source:Reuters-Global Times Published: 2013-10-9 23:53:01

Shares of Hong Kong-listed solar panel maker Shunfeng Photovol­taic International rose 22.4 percent Wednesday, after it submitted a bid for a stake in the main unit of troubled rival Suntech Power Holdings.

In a Wednesday filing with the Hong Kong stock exchange, Shunfeng said it had made a bid with the debt administrator of Wuxi Suntech Power, which is struggling under a mountain of debt, on Tuesday for an equity stake in the unit as well as a proposal to restructure its $1.75 billion debt.

It made a 500 million yuan ($81.7 million) deposit for the bid, which is aimed at strengthening its solar cell and module manufacturing capabi­lity and aiding its diversification into the operation of solar power plants, Shunfeng said.

"The possible acquisition is in line with the group's expansion strategy and will enable the group to further strengthen its production capabilities of solar cells and modules," Shunfeng said in the filing.

The restructuring of Suntech's domestic debt is being closely watched by overseas creditors, whom analysts say are expected to recover a fraction of their capital at best.

Amid a worsening glut in solar panels globally, Wuxi Suntech filed for bankruptcy protection in ­China in March, five days after its New York-listed parent company defaulted on a $541 million convertible bond.

Shunfeng is vying with a consortium formed by China's top polysilicon producer, GCL-Poly Energy and Wuxi Guolian, the investment arm of the city government of Wuxi where Suntech is headquartered, a source close to the matter told Reuters.



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