Chinese solar firm LDK Solar Co Ltd (LDK.N) agreed to acquire a 70 percent stake in U.S.-based Solar Power Inc (SOPW.OB) for about $33 million to enhance module supply for its large-scale projects.

LDK, whose photovoltaic products are used in solar power panels, said it will also purchase certain components of Solar Power’s manufacturing equipment and assume control of the module-manufacturing plant in Shenzhen, China.

“This transaction also expands our downstream vertical integration opportunities and provides LDK Solar and SPI the opportunity to jointly explore opening manufacturing operations in the U.S.,” LDK said in a statement.

Solar Power was the architect of projects like the Staples Center and the Aerojet solar farm, said LDK Solar, the world’s largest maker of polysilicon wafers for the solar energy market.

Granite Bay, California-based Solar Power, known for its Yes! branded products, had a market capitalization of $18.30 million. With the LDK deal, Solar Power is valued at about $47 million.

LDK Solar’s shares closed at $10.35 Wednesday on the New York Stock Exchange. They have risen 3 percent since it said it reached 3 gigawatts in annualized capacity at its wafer plants on Dec. 28. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Gopakumar Warrier).

source: reuters

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