ReneSola Ltd, a leading global manufacturer of solar wafers andproducer of solar power products, announced that the company hasdetermined not to proceed with its acquisition of Dynamic Green EnergyLtd.
ReneSola and Dynamic Green, which operates through itswholly owned subsidiary Jiawei Solarchina Co. Ltd and other Chineseoperating subsidiaries, announced a share purchase agreement onSeptember 23, 2009 under which ReneSola agreed to acquire 100 percentof the shares of Dynamic Green, subject to customary closing conditions.
Whilethe acquisition and share purchase agreement were approved by bothcompanies’ boards of directors, the transaction has not been approvedby local government agencies where an operating subsidiary of Jiawei islocated. According to the terms of an agreement between Jiawei and thelocal government, the sale of shares of Dynamic Green requires relevantgovernment approvals.
As indicated in the share purchaseagreement between ReneSola and Dynamic Green, the transaction could beterminated without penalty if Jiawei did not obtain the relevantgovernment approvals by December 31, 2009. After careful consideration,ReneSola has terminated discussions regarding the acquisition.
"Despitethe termination of the Jiawei acquisition, ReneSola’s downstreamstrategy remains intact and we continue to witness impressive organicgrowth in our JC Solar cell and module business," said ReneSola’s ChiefExecutive Officer Li Xianshou.
"We are still in a strongposition to leverage our wafer manufacturing capabilities and deepcustomer relationships to quickly expand our downstream business. Weexpect to see significant top-line and bottom-line growth from ourdownstream business in 2010."