Friendship&Apollo Ends Renewable Energy Partnership with Microstart

PVTIME – Hunan Friendship&Apollo Commercial Co. (Friendship&Apollo, 002277.SZ), a China-based company principally engaged in commodity trading, recently announced the termination of a debt-financed acquisition framework agreement signed between Friendship&Apollo and Mircrostart, a semiconductor manufacturer. All rights and obligations between the two parties have been terminated and the parties are not liable to each other for any breach of contract.

According to the announcement, the parties have not reached an agreement on the final transaction proposal. On 30 October 2023, Friendship&Apollo planned to transfer its 27.5% equity interest to Mircrostart or its nominee, and a new subsidiary established by Mircrostart in Changsha City would assume the principal amount of Friendship&Apollo’s external debt of 1.4 billion yuan. Under the Debt Financed Acquisition Framework Agreement, Mircrostart must complete the asset injection of renewable energy-related businesses, including energy storage, photovoltaic, new energy, data, charging piles and so on, with a market value of not less than 1 billion yuan within 3 to 12 months. This was seen as a crucial step for Friendship&Apollo to expand its business into renewable energy, resulting in a huge increase in its share price at the time.

With the termination of the agreed acquisition, the company’s transformation into new energy has come to a halt. According to the announcement, Friendship&Apollo will continue to seek strategic partners and other strategic collaborations.

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