Boston, MA 09/04/2014 (wallstreetpr) – According to an announcement made by Trina Solar Limited (ADR)(NYSE:TSL) on Tuesday, it has decided to enter into an agreement with Yunnan Metallurgical New Energy Co. Ltd. As per T&C of the deal, TSL has signed a share purchase agreement with Yunnan Metallurgical New Energy Co. Ltd. It has also acquired 90% stake in the company that will make it a major shareholder of Yunnan Metallurgical.
Yunnan Metallurgical New Energy Co. Ltd. is a well-known name in the development field of downstream solar photovoltaic (PV) and currently it has a 300 MW project work in progress in southern Yunnan province.
What’s the after effect of this deal:
As per the analysis done by market experts, Yunnan Metallurgical New Energy Co. Ltd will become the largest single utility-scale solar PV plant in Yunnan once the acquisition deal is executed. This acquisition deal with Trina Solar Limited (ADR)(NYSE:TSL) will also earn a place for the company among top notched single utility-scale solar PV plants of China.
The management of the company expects that the construction work of the 300 MW project will probably begin in the third quarter of 2014. After combining the resources of strategic partners, Yunnan Metallurgical New Energy is also focusing on adjoining hands with other companies for further operational expansion. The company is actively seeking support of different partners for the development of its downstream pipeline project.
The management of Yunnan Metallurgical New Energy Co. Ltd. thinks that the acquisition deal with TSL has opened new doors for it, and other companies will also take interest in its capabilities. TSL has acquired 90% stake in Yunnan Metallurgical New Energy Co. Ltd. The other 10% stake is jointly held by Kunming Yeyan New Material Co., Yunnan Metallurgical Group Co. Ltd., and Kunming Engineering & Research Institute of Nonferrous Metallurgy Co., Ltd. The management of Trina Solar Limited (ADR)(NYSE:TSL) is looking forward to getting positive downstream opportunities through this deal.
