Serious question marks have been raised over a deal involving Chinese solar manufacturer Hanergy Thin Film Power, as the company releases a statement cancelling a share sale that was part of a $660 million equipment sale. It is the latest chapter in the Hanergy saga, which has seen the companys shares plummet over the last 12 months, eventually resulting in the suspension of its shares trading.
Shangdong Macrolink New Resources Technology entered the agreement with Hanergys subsidiary, Fujian Apollo Precision, last February; however the financing terms of the deal raised questions over the true nature of the deal. Hanergy was due to supply Macrolink with 600 MW of building-integrated PV production equipment, as well as providing services to maintain the equipment, for $660 million and a curious stipulation that Macrolink would purchase 1.5 billion new shares in the company, which amounted to a total of 1.5 of Hanergys enlarged share capital entitled the Subscription Agreement.
As part of the Subscription Agreement within the deal, Macrolink was required to pay 80% of the total amount under the Sales Contract before 30 April 2016. However, Hanergy released a statement on the Hong Kong Stock Exchange on Tuesday which said that Macrolink hadnt fulfilled the 80% payment obligation, thus scrapping the share sale condition within the initial contract.
This appears to have all but killed the deal, however Hanergy seems to be clinging on to the possibility that the sale will still go through, as it wrote within the statement: For the avoidance of doubt, the Sales Contract and the Service Contract shall remain in full force and effect.
It is the latest in a long line of PV production equipment deals between Hanergy and outside companies to have fallen through since 20 May 2015 when the companys stock fell 47%. This most recent one casts further doubt on whether Hanergy will be able to turn around its fortunes and once again become a major player in the solar market.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.