2024-08-14
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【Introduction】Tongwei Co., Ltd. plans to invest no more than 5 billion yuan to acquire a total of no less than 51% of the equity of Runyang Co., Ltd.
China Fund News reporter Niu Siruo
The photovoltaic industry is making a big move again! On the evening of August 13, Tongwei Co., Ltd. launched a large-scale merger and acquisition plan, intending to spend no more than 5 billion yuan to acquireJiangsu Runyang New Energy Technology Co., Ltd. (hereinafter referred to as Runyang Shares)controlling stake.
It is worth noting that Runyang shares had attempted to be listed on the Growth Enterprise Market and had obtained registration approval from relevant departments in June 2023. However, due to the failure to complete the issuance and listing procedures within the validity period of the approval document, Runyang shares ultimately failed to successfully land on the A-share market.
Spend 5 billion yuan to acquire
On August 13, Tongwei Co., Ltd. announced that the company plans to sign a "Capital Increase Intention Agreement" with Runyang Co., Ltd., Shanghai Yueda New Industrial Group New Energy Co., Ltd. and other relevant shareholders of Runyang Co., Ltd., and Jiangsu Yueda Group Co., Ltd.
According to the announcement, after the signing of the aforementioned agreement, Jiangsu Yueda Group Co., Ltd. will increase the capital of Runyang Shares by RMB 1 billion in cash; after Tongwei Shares completes the due diligence, audit and evaluation of Runyang Shares, and reaches a formal capital increase plan with all parties, the company will increase the capital of Runyang Shares in cash with its own or self-raised funds, and at the same time acquire the equity of Runyang Shares obtained by Yueda Group with the aforementioned RMB 1 billion capital increase in cash.Acquired a total of no less than 51% of Runyang shares。
The total amount of the above-mentioned transaction shall not exceed RMB 5 billion. After the transaction is completed, Runyang Co., Ltd. will become a wholly-owned subsidiary of Tongwei Co., Ltd.
Tongwei Co., Ltd. stated that this transaction will be conducive to fully leveraging the industrial chain synergy between the company and Runyang Co., Ltd., further consolidating the company's market share in core links such as high-purity silicon, high-efficiency solar cells and modules, and effectively supplementing the company's overseas production capacity layout. It will help the company expand its sales channels in overseas high-premium markets and enhance its global comprehensive competitiveness, which is in line with the company's long-term strategic goal of "building a world-class clean energy operator."
In addition, Tongwei Co., Ltd. also stated that the above-mentioned transaction is in line with the relevant opinions of relevant departments on guiding the orderly and healthy development of the photovoltaic industry, which is conducive to promoting the integration of high-quality resources in the photovoltaic industry, reducing the waste of social resources and inefficient competition in the industry, and improving the overall efficiency of the photovoltaic industry.
The target company failed to go public on the A-share market
Runyang Co., Ltd. is a well-known solar energy company that focuses on the research and development, production and sales of high-efficiency solar energy products, and is also involved in industrial silicon, polysilicon, silicon wafers, modules and photovoltaic power station businesses.
It is worth mentioning that Runyang shares have been planning to go public on the Growth Enterprise Market in recent years. The official website of the Shenzhen Stock Exchange shows that Runyang shares obtained the approval of the China Securities Regulatory Commission for its initial public offering registration on June 29, 2023. The approval is valid for 12 months from the date of approval of registration. At present, Runyang shares have been unable to issue shares for listing because the IPO registration approval has expired.
According to the prospectus of Runyang Shares, the company plans to raise 4 billion yuan, of which 2.5 billion yuan will be used for the annual production of 50,000 tons of high-purity polysilicon projects and the annual production of 5GW heterojunction battery cells. Another 1.5 billion yuan will be used to supplement working capital.
The announcement shows that Runyang Co., Ltd. has currently established production capacity of 55,000 tons of industrial silicon, 130,000 tons of polysilicon, 7GW crystal pulling, 10GW slicing, 57GW solar cells and 13GW modules.
Industry insiders said, "One of Runyang's important advantages is its overseas production capacity layout and channel network construction, and the overlap between its production capacity and that of Tongwei is extremely high."
Previously, Tang Jun, president of Runyang Solar, said: "The European Union, the United States, South America and other regions are our advantageous regions. Currently, Europe and the United States account for more than 80% of Runyang's shipments, and the company is also planning other key overseas markets. It is expected that the company's annual overseas component shipment target for 2024 will be around 6.5GW."
Regarding this merger and acquisition, Tongwei Co., Ltd. also admitted that Runyang Co., Ltd. has formed a complete industrial chain from upstream industrial silicon to terminal photovoltaic power stations, and has differentiated competitive advantages in production costs, product quality, brand value, etc., and has built competitive production capacity in some overseas markets such as the United States, Thailand, and Vietnam, which can meet the traceability requirements of overseas markets.
Editor: Xiaomo
Review: Xu Wen
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