CNPV Solar Power SA, a public limited liability company organized under the laws of the Grand Duchy of Luxembourg and a leading integrated manufacturer of solar photovoltaic products, today confirmed shareholder approval was obtained within the shareholders meeting of November 5, 2012, for the ownership transfer of 50.38% of the shareholding of CNPV Dongying Solar Power Company Limited; a wholly owned indirect subsidiary and its sole asset, to a Chinese company controlled by the local government.
The resultant bilateral ownership may now more readily access additional liquidity from international sources, ensuring CNPV Dongying Solar Power Company Limited can continue to generate a profitable and managed growth within the severely depressed solar PV market. The requirement to assign a controlling share is neither an indication of lack of faith in the existing strategy, or management team, but is a fundamental requirement for assets to be best used as security within a tumultuous operating market.
The dual owners have made a binding commitment to accelerate CNPV Dongying Solar Power Company Limited’s manufacturing expansion, and operation diversification of up to 40% turnover from Independent Power Producer (IPP) activity. The strategic direction and subsequent actions of CNPV Dongying Solar Power Company Limited with respect to existing and emergent markets, its strategic partners, and technology promotion, are reinforced with the introduction of the additional personnel resources.
Further notification will be announced upon signing and completion of the transaction in the immediate future.