XINYU CITY, CHINA & SUNNYVALE, USA: LDK Solar Co. Ltd, a leading manufacturer of multi-crystalline solar wafers, has entered into an agreement to acquire the crystalline module manufacturing plant of Best Solar Co. Ltd.
Under the terms of the transaction LDK Solar will acquire Best Solar's crystalline module manufacturing plant at cash consideration of $21.5 million, representing the fair value of the assets acquired determined on an arms-length basis.
"This acquisition will significantly enhance LDK Solar's position in the downstream PV market," stated Jack Lai, Executive Vice President, Chief Financial Officer, and Secretary of LDK Solar. "LDK Solar has been fulfilling the majority of its solar module needs through purchases from Best Solar over the past three quarters. We look forward to realizing cost efficiencies by bringing crystalline module manufacturing in-house. This acquisition represents an important step as we continue to expand the scope of our vertical integration and strengthens our competitive advantage within the sector."
Best Solar is wholly owned by LDK New Energy Holding Limited, which is LDK Solar's controlling shareholder, and wholly owned by Xiaofeng Peng, Chairman and CEO of LDK Solar. The terms of the agreement have been reviewed and approved by LDK Solar and Best Solar on an arms-length basis using the fair market value of the acquired assets.
The fair market value was determined by a valuation analysis performed by a third party independent valuer and approved by LDK Solar's management team and Audit Committee. Best Solar has undertaken not to engage, and therefore compete with LDK Solar, in the module business after this transaction is completed.