Hanwha Chemical Acquires 49.99% Stake
in Solarfun Power
[03 August, 2010] Hanwha Chemical Corporation (“HCC,” KOSPI: KS009830) announced today that it has entered into definitive agreements to acquire a 49.99% stake in Solarfun Power Holdings Co., Ltd. (NASDAQ: SOLF, “Solarfun”), a leading global vertically-integrated manufacturer of ingots, wafers, solar cells, and modules based in China, for approximately $370 million USD (KRW434 billion). This series of transactions is expected to be completed by the end of September, 2010, and is subject to the satisfaction of certain closing conditions specified in the agreements. Following the closing of the transactions, HCC will be Solarfun’s largest shareholder with certain governance rights under a shareholder’s agreement with Solarfun, including board representation, as well as preemptive, registration, and consent rights.
Solarfun will enhance and broaden the scope and size of HCC’s existing solar business, thus making progress towards its goal of becoming a leading, vertically integrated player in the solar industry.
Mr. Ki-Joon Hong, CEO and President of HCC, commented, "This transaction ideally positions HCC and Hanwha Group for further growth in the solar industry. Solarfun, with its low-cost manufacturing base, complements our existing solar business and immediately provides economies of scale, a factor which is essential to become a leader in the solar industry. Solarfun also provides us with access to key customers and markets for photovoltaic (“PV”) products. We see many opportunities for the diversified affiliates of Hanwha Group to jointly work with Solarfun to achieve its business plan, which we expect to result in growth for both Solarfun and Hanwha. We share a common vision for Solarfun to make it our flagship vehicle in the solar business and to build one of the largest and leading solar companies in the world. We will work closely and constructively with Dr. Xie, who has been concurrently appointed as CEO of Solarfun with this transaction, and his strong management team to make this vision a reality.”
Dr. Peter Xie, Chief Executive Officer and President of Solarfun, stated, “We are excited to have Hanwha Chemical as a strategic investor and partner. Hanwha Group’s substantial financial resources, extensive global relationships, and proven expertise in building energy projects will be invaluable to Solarfun as we continue to grow our business and penetrate new markets.”
This transaction represents Hanwha Group’s first strategic expansion into the solar industry, which HCC initially entered in 2009 with the construction of a 30MW cell production facility in Ulsan, Korea. Leveraging the strategic momentum and benefits of this transaction, Hanwha Group expects to continue to pursue organic and inorganic growth initiatives in the solar industry.
"As competition in the market increases, it is becoming more important to be able to provide complete energy solutions at affordable prices to customers. We are confident that this transaction will accelerate our growth and development towards what we believe is the most desirable business model in the solar industry, a business model that encompasses project development, cell/module manufacturing, EPC, financing, and O&M,” added Mr. Hong.
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