A-Power Signs ‘MOU’ For Evatech Co. Ltd

Evatech Co. Ltd has just become a part of A-Power Energy Systems Ltd. after the company signed a Memorandum of Understanding to purchase 100% of the company. Evatech engineers and produces industrial equipment for LCDs and plasma panels. A-Power Energy will purchase Evatech in an all cash deal for a value of $50 million. 

A-Power Energy is expected to fund the transaction through a series of government provided subsidies and loans. The anticipated government subsidies coupled with additional government loans are expected to cover up to 40 to 45% of the total transaction of $50 million.

The companies have hired auditors in Japan to determine the overall fairness of the agreement and issue a fairness opinion of the purchase and transfer of the company. A-Power said that they hope to have signed a more concrete purchasing agreement with Evatech by September, and then subsequently to close the deal sometime before the end of November 2009. 

“We are truly excited about the potential of adding Evatech’s advanced thin-film solar technology to our reservoir of expertise in the design, manufacturing and installation of clean energy systems,” said Jinxiang Lu, A-Power Energy Generation Systems Ltd’s chairman and CEO.”The timing is fortuitous for alternative energy developers in China. Our central government just last month announced the ‘Golden Sun’ project to subsidize up to 70% of the costs of building solar farms with a total capacity of at least 500 MW by 2012, versus the country’s current capacity of 80 MW”, he added.

Evatech’s technology is used for the construction of solar panels to generate solar energy on rooftops and currently existing structures. The solar industry has just received major incentives in China, after the government passed several grants which would give funding to companies expanding into the solar energy industry. The ‘Golden Sun’ plan, announced just last month, will aid solar companies at up to 70% of cost for new projects and solar installations.

Thanks to renewableenergyworld.com for the above quotes, for more information on this story please visit their website.