Suntech snaps up S.A.G Solarstrom's assets with Shunfeng's chequebook
S.A.G. Solarstrom AG (under insolvency proceedings) has concluded a contract for the acquisition of operative business operations of the S.A.G. Group, including all assets, with SF Suntech Deutschland GmbH, a subsidiary of Shunfeng Photovoltaic International Ltd. (SF-PV). The purchase price is €65 million. As part of a transferred reorganization scheme, the transaction will enable the operative business of the S.A.G. Solarstrom Group, together with all its business areas, to be continued and the further European activities of Shunfeng to be bundled. S.A.G.'s management, who together with the insolvency administrator Dr. Jörg Nerlich, of Görg Legal Offices in Cologne, predominantly drove the investor process, will remain in the new company at management level. The investor process has been supported by Roland Berger Strategy Consultants. The S.A.G. Solarstrom Group's creditors can expect an above-average insolvency quota with the successful conclusion of the investor process.
With the acquisition, the vertically integrated photovoltaic group Shunfeng is strengthening its global downstream activities in the market for renewable energies.
"The S.A.G. Solarstrom Group is a perfect fit for our downstream portfolio and will strengthen our European presence in the photovoltaic market. The Group has very good access to markets and in particular, many years of experience in the implementation of international photovoltaic projects", says Eric Luo, CEO of SF Suntech. "The S.A.G. subsidiary meteocontrol is also a world market leader in the professional monitoring of photovoltaic systems and therefore not just a very interesting extension to our own system portfolio. I am delighted that we have gained a highly motivated and qualified management and staff team with this acquisition, and that Dr. Karl Kuhlmann has agreed to lead the company as CEO".
As a photovoltaic specialist, the S.A.G. Solarstrom Group has, in particular, many years of expertise in the planning, construction and operation of photovoltaic power plants, including monitoring and maintenance. As part of the growth strategy, it is anticipated that new jobs will be created and the future company location of Merzhausen will function as the European headquarters.
"It was our goal to find a strong international partner to take over the Group with all its business areas, with whom we would be able to continue to expand our offer along the entire photovoltaic value-added chain and implement our plans for growth", says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. "And we have succeeded. For the new company, we envisage substantial growth prospects, both in the European and in the international market, and very much look forward to our further collaboration".
The new company, in which the other European activities of Shunfeng are also to be bundled, will move to the planned office building in Merzhausen in mid-2016, according to the current state of planning. S.A.G."˜s management will remain in a managerial capacity in the new company. Although the acquisition by SF Suntech might be subject to the approval of the SF-PV shareholders, the release of securities and to merger clearance checks, the insolvency administrator and the contractual partners are anticipating that the transaction can be concluded within the next six to eight weeks. "In 2015, we can start up once again with international plant construction. New business was put on hold up to now due to the insolvency proceedings", explains Kuhlmann.
In December 2013, S.A.G. Solarstrom AG filed for insolvency due to delayed cash inflow in the amount of €20 million. With the transferred reorganization scheme through the sale to SF Suntech, the insolvency administrator Dr. Jörg Nerlich from Görg Legal Offices, Cologne, achieved the most important milestone "“ the Group will be continued, the jobs will remain secured and the Group's creditors, including the holders of the two corporate bonds, are expected to receive an above-average quota of almost 50% on their receivables, whereby the quota might be considerably above or below this value, depending on the actual result. "This is the result of excellent cooperation with S.A.G."˜s management, for which I would like to express my sincere thanks", says Dr. Jörg Nerlich. "Projects have been successfully concluded, strategic projects have been continued, the expected return flows of funds have been made and, in particular, the investor process has been very professionally supported at all times by management and staff".
It is anticipated that the residual limited company will be withdrawn from the stock exchange in the next few months and liquidated as part of the ongoing insolvency proceedings. According to the current status, it is not to be expected that shareholders will receive a return flow on their invested capital. As the Group has been focusing mainly on the investor process over the last few months, the 2013 annual financial statement will be finalized and published in a few weeks, after the transaction has been concluded.
