Suntech Power Holdings Co., Ltd (NYSE: STP) ("Suntech"), one of the world's largest producers of solar panels, today announced that it has settled all outstanding disputes with GSF Capital Pte Limited ("GSF Capital") and Javier Romero in connection with a guarantee provided by GSF Capital to Suntech.
As part of the settlement, GSF Capital will dispose of its entire ownership interest in Global Solar Fund, S.C.A., Sicar (the "Fund") for an agreed consideration and it will no longer have any ownership interest in the Fund. Suntech's equity interest in the Fund will increase from 79.3% to 88.15% and the equity interest owned by Best (Regent) Asia Group Ltd., a company ultimately held by Dr Zhengrong Shi, will increase from 10.7% to 11.85%. Due to the change of control of the Fund, Suntech will consolidate the Fund upon completion of the related equity transfer.
In addition, the court orders obtained by Suntech will be discharged. The settlement does not involve an admission of liability on the part of GSF Capital or Mr Romero.
David King, Suntech's CEO, said, "We are very pleased to have reached this settlement. The new ownership structure will ensure that Suntech has full control of the Global Solar Fund and can manage and operate the Fund's portfolio of solar plants to maximise the value for our stakeholders."