WUXI, China, Aug. 14 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co.,
Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic
(PV) cells, announced today that it has closed the first-step of its
acquisition of MSK Corporation, previously announced on August 2, 2006 and is
proceeding with the integration of the two companies.
By completing the first step of the two-step cash and stock transaction
acquisition, Suntech has acquired a two-thirds equity interest in MSK for $107
million in cash.
"We believe that this acquisition brings significant benefits to Suntech,
including an extensive PV module sales and distribution network in the key
Japanese market and the advantage of MSK's leading product development and
value-added PV solutions," said Dr. Zhengrong Shi, Suntech's Chairman and CEO.
Dr. Shi continued, "We have a strong integration plan in place and expect
both companies will benefit from synergies generated by combining many
overlapping areas of our operations, from manufacturing, sales, and purchasing
to R&D and back office functions including financial management and IT."
Upon closing of the second step of the acquisition, which is expected to
occur by the end of 2007, Suntech will acquire all or a substantial portion of
the remaining interest in MSK for a consideration based on MSK's ability to
achieve certain financial targets. If Suntech acquires 100% of the remaining
interest in MSK, the range of consideration for the second step is $53 million
to $193 million in the form of Suntech shares. The first step of the
transaction was financed through a one year bridge loan.
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the
world as measured by production output of solar cells in 2005. Suntech
provides solar solutions for a green future. Suntech designs, develops,
manufactures, and markets a variety of high quality, cost effective and
environmentally friendly PV cells and modules for electric power applications
in the residential, commercial, industrial, and public utility sectors.
Suntech's customers are located in various markets worldwide, including
Germany, Spain, China and the United States. For more information, please
visit http://www.suntech-power.com .
Safe Harbor Statement
This announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements. Among
others, statements regarding Suntech's beliefs and expectations about the
expected benefits of the acquisition of MSK, including without limitation, the
statements that such acquisition would give Suntech the advantage of MSK's
nationwide sales and marketing platform in Japan as well as the advantage of
MSK's leading product development and value-added PV solutions, and the
expected synergies from combining the two companies, are forward-looking
statements. Such statements involve certain risks and uncertainties that could
cause actual results to differ materially from those in the forward-looking
statements. Further information regarding these and other risks is included in
Suntech's annual report on Form 20-F filed with the U.S. Securities and
Exchange Commission. Suntech does not undertake any obligation to update any
forward-looking statement, except as required under applicable law.
For more information, please contact:
Suntech Power Holdings Ltd.
Tel: +86 510 8534 5000
Ogilvy Public Relations Worldwide
Tel: +86 10 8520 6550
Mobile: +86 1350 1166 560
In the United States:
Ogilvy Public Relations Worldwide
Tel: +1 212 880 5269
SOURCE Suntech Power Holdings Co., Ltd.
/CONTACT: In China: Cindy Shao, Suntech Power Holdings Ltd., +86-510-
8534-5000, email@example.com ; or Philip Lisio, of Ogilvy Public Relations
Worldwide, Tel: +86-10-8520-6550, or Mobile: +86-1350-1166-560, or
firstname.lastname@example.org ; or In the United States: Thomas Smith, of Ogilvy
Public Relations Worldwide, +1-212-880-5269, or email@example.com /
/Web site: http://www.suntech-power.com /
CO: Suntech Power Holdings Co., Ltd.; MSK Corporation
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9667 08/14/2006 09:23 EDT http://www.prnewswire.com