Exchange Database
Zhenfa to buy 51% stake in US firm
Chinese solar giant takes controlling share of Connecticut-based STR. A partnership between a leading Chinese developer of photovoltaic power stations and a Connecticut-based supplier of encapsulants will provide both a strategic ally in the global solar module manufacturing market, according to company executives. Joe Radziewicz, vice-president and CFO of STR, said in a Wednesday interview with China Daily that one of the key benefits of this partnership for STR is the fact that Zhenfa has "significant relationships" with a number of well-established Chinese solar module manufacturers.
Outcomes:
"Based on those relationships, they think they can influence and increase demands for our encapsulant but we think our research and development lab here in Connecticut, combined with the knowledge we have in solar from the past 40 years, will be a nice benefit for them too," he said. STR Holdings Inc and Zhenfa Energy Group Co announced on Tuesday that Zhenfa has agreed to invest $21.7 million in STR in exchange for more than 27 million newly issued shares. Zhenfa's stake in STR at the completion of the deal will be about equal to 51 percent, but STR's senior management team and day-to-day operations will remain in the US, the press release said.
Government?:
No
Type of Exchange:
business
Partners:
STR Holdings Inc
Zhenfa Energy Group Co
Sponsor(s):
STR Holdings Inc
Participants (Types):
business people
Exchange Date:
Tuesday, August 12, 2014
Continuing:
No
Location:
Connecticut, US
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