China’s Solar Power Inc. is acquiring acquire an 80% stake the outstanding capital stock of Australian PV wholesale distributor Solar Juice for US$25.5 million.
“We have spent over 5 years building Solar Juice into the leading PV wholesale distribution business in Australia,” said Andrew Burgess, co-founder of Solar Juice. “Given the huge potential we see in the Australia PV market in the coming years, we felt the timing was right for Solar Juice to seek additional resources to capture this once-in-a-lifetime opportunity.”
Rami Fedda, another co-founder of Solar Juice, said number of areas have been identified “where the combination of our organizations can leverage more opportunities than as standalone businesses.”
SPI has increased its war chest by US$1.6 billion recently to help fund its funding requirements. It is being funded by credit lines from China Minsheng Bank, China Construction Bank and Suzhou Bank. LDK Solar-backed SPI has been on the acquisition trail in Europe.
“We have been evaluating for some time the best entry point into the very promising Australia market, and we are confident this transaction gives SPI the strongest local platform to address this tremendous market opportunity,” said said Xiaofeng Peng, Chairman of SPI. “We feel this is truly a win-win arrangement for both companies, and we look forward to working closely with our new partners and shareholders at Solar Juice.”
The transaction is subject to several conditions.