March 15, 2013 - SMA Solar Technology AG has concluded the acquisition of a majority stake of 72.5% in Jiangsu Zeversolar New Energy Co., Ltd.. The acquisition of a majority share in Zeversolar was approved by the Chinese government authorities. Zeversolar's products are specially tailored to the requirements of the Chinese photovoltaic market. This transaction secures SMA access to the growing Chinese market and strategically consolidates its position as a global market leader.
"Just recently, the Chinese government has significantly raised its photovoltaic expansion targets again. The new target is to install a further 10 gigawatts each year over the next three years making China the largest photovoltaic market worldwide. Therefore, the majority stake in Zeversolar, which makes it possible for SMA to gain access to this growth market, is of great strategical importance," explains CEO Pierre-Pascal Urbon.
SMA plans to use the majority stake primarily to aid comprehensive operation in the Chinese market. Zeversolar offers products tailored to the needs of the local market. The capacity of the modern production site in Yangzhong can be quickly increased, if required. Furthermore, Zeversolar is also in contact with the prevailing customers and decision-makers in the energy industry. "This transaction will provide SMA with access to the most important photovoltaic market of the future. Moreover, we will profit from the synergies in Purchasing, Production and Development. We are expecting a positive contribution to earnings over the mid-term," says Pierre-Pascal Urbon.
Zeversolar's company value based on SMA's stake of 72.5% is CNY 319 million (approx. €40 million) from which net liabilities were deducted in order to determine the purchase price. The purchase was financed with cash on hand.
The economic start of the transaction is Jan.1, 2013 retrospectively.