Tongwei said that the company intends to sign the "Agreement of Intent to Increase Capital Increase" with relevant shareholders such as Runergy, and Jiangsu Yueda Group Co., Ltd.. Yueda Group will increase the capital of Runergy by 1 billion yuan in cash. The company intends to increase the capital of Runergy shares in cash with its own or self-raised funds, and at the same time acquire the equity of Runyang shares obtained by Jiangsu Yueda Group with the aforementioned capital increase of 1 billion yuan, thus Tongwei will obtain a total of not less than 51% of the equity of Runergy. The total amount of the transaction shall not exceed RMB 5 billion, and after the completion of the transaction, Runyang will become a holding subsidiary of the company.
Prior to this, Runergy planned to be listed on A-shares and raise 4 billion yuan. However, due to various reasons, the company did not continue its listing plan. The acquisition of Tongwei will be a great benefit to all shareholders, relevant stakeholders, and employees of Runergy.
Tongwei revealed that the "Agreement of Intent to Increase the Capital Increase" signed this time is only the preliminary principled intention reached by the parties to the transaction on the capital increase or equity acquisition, and the promotion of relevant matters still needs to be further negotiated by the parties according to the audit report and evaluation report issued by the intermediary agency. The transaction matters also need to be reviewed and approved by the relevant national regulatory authorities, and there is a risk that the final transaction cannot be reached. This transaction does not constitute a connected transaction, nor does it constitute a material asset restructuring.
From 2020 to 2022, Runergy ranked among the top three in the world in pv cell shipments for three consecutive years, and still maintained the top five in the world in cell shipments in 2023.
Based on the long-term accumulation in the field of solar cells, Runergy have further extended to the upstream and downstream industrial chain of photovoltaics, and have established a production capacity of 55,000 tons of industrial silicon, 130,000 tons of polysilicon, 7GW of crystal pulling, 10GW of slicing, 57GW of solar cells and 13GW of modules, and appropriately laid out part of the photovoltaic power station business, forming a complete industrial chain from upstream industrial silicon to terminal photovoltaic power stations. The company also has differentiated competitive advantages in terms of production cost, product quality, brand value, etc., and in United States, Thailand, and it has built competitive production capacity in some overseas markets such as Viet Nam to meet the traceability requirements of overseas markets.
Source: https://mp.weixin.qq.com/s/o_yPJ3PTxIIpPxWQjbbLHw
