Jan. 4, 2012 (China Knowledge) - LDK Solar Co Ltd<LDK>, the world's largest manufacturer of multi-crystalline solar wafers, announced on Tuesday that it plans to acquire around 33% equity interests of Germany-based Sunways AG at a consideration of EUR 2.2 million.
In a statement, New York-listed LDK Solar said it will also submit a public takeover offer to the firm's shareholders for all outstanding shares in Sunways at a price of EUR 1.90 apiece.
Frankfurt-listed Sunways, which has purchased raw materials from LDK Solar for many years, will continue to be a separate brand and currently has no plans to withdraw from the capital market, said a person familiar with the matter.
The deal is subject to approval by the Federal Financial Supervisory Authority and expected to be completed by the end of March 2012.
Upon the completion of the deal, the two sides would terminate a long-term supply contract, sources reported.
Xiaofeng Peng, Chairman and CEO of LDK Solar, said the acquisition would accelerate the firm's overseas market expansion.
Sunways, which had about 340 employees at the end of 2010, realized sales of EUR 220 million last year.