ROSEVILLE, Calif.--(BUSINESS WIRE)--SPI Solar (“SPI”) (SOPW:OTCBB), a vertically-integrated photovoltaic solar developer, today announced that it has entered into an agreement to acquire Sinsin Renewable Investment Limited (“SRIL”), a limited liability company registered in Malta. SRIL is involved in the development, acquisition, management and operation of energy solutions, and owns solar photovoltaic (“PV”) projects in Greece with an annual nameplate capacity of 26.57 megawatts (“MW”). Under the terms of the agreement, SPI’s subsidiary, SPI China (HK) Limited, will acquire all of the outstanding capital stock of SRIL from Sinsin Europe Solar Asset and Sinsin Solar Capital (collectively “Sinsin”) for an aggregate purchase price of 70,600,000 Euros (U.S. $91,780,000) using a mixture of cash and SPI shares, including $27.5 million in SPI shares at $0.72 a share, with closing expected in September 2014.
Additionally, the agreement contains a provision specifying that Sinsin or its affiliates may appoint SPI and its subsidiaries to provide engineering, procurement and construction (“EPC”) services on up to 360 MW of additional solar PV projects that Sinsin intends to invest in and/or develop over the next three years.
This announcement marks a significant milestone in the continued buildout of SPI’s global solar PV asset portfolio, including through strategic partnerships.
Dejun Ye, a Director of Sinsin, noted, “SPI has been extremely active lately in establishing itself as a premiere developer and owner of PV projects internationally. We feel that SPI is an appropriate partner for Sinsin as global PV installations continue to show rapid growth.”
“We are delighted to announce this agreement with Sinsin,” said Min Xiahou, Global Chief Executive Officer of SPI. “We believe that this contemplated transaction is a ‘win-win’ for both parties, and SPI looks forward to expanding our global partnership with Sinsin as outlined in the EPC framework over the coming years.”
Xiaofeng Peng, Chairman of SPI, added, “This agreement represents another major step in transforming SPI into a world-class, global company with a diversified, growing portfolio of high quality assets. SPI will continue to invest prudently in growing our business in order to maximize value for our shareholders and partners.”
About Solar Power, Inc. (SOPW:OTCBB):
SPI Solar (“SPI”) (Solar Power, Inc.) is a vertically-integrated photovoltaic solar developer offering its own brand of high-quality, low-cost distributed generation and utility-scale solar energy facility development services. From project development, to project financing and to post-construction asset management, SPI delivers turnkey world-class photovoltaic solar energy facilities and turnkey residential solar solutions to its business, government and utility customers. For additional information visit: www.spisolar.com.
About Sinsin Europe Solar Asset Limited Partnership:
Sinsin is a partnership whose limited partner is Xinxing Ductile Iron Pipes Co., Ltd. (“Xinxing”), with headquarters in Beijing and listed on the Shenzhen Stock Exchange. Xinxing is one of the largest producers in China of ductile iron pipes, ductile iron fittings, steel gratings and other specialty steel products. For additional information visit: http://www.xinxing-pipes.com/.
Safe Harbor Statement:
This release contains certain “forward-looking statements” relating to the business of SPI Solar, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as “believes”, “expects” or similar expressions. Such forward-looking statements include but are not limited to that the SRIL acquisition will occur, that SRIL’s Greek projects will be operated profitably and that SPI will enter into future projects with Sinsin. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the company's reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.