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China,United States : STR HOLDINGS sells 51% stake to ZHENFA ENERGY GROUP for US$21.7 MILLION

August 14, 2014

STR Holdings declared that it has inked an agreement for the sale of its 51% stake to Chinese PV developer Zhenfa Energy Group for around US$21.7 million.

The deal will see, Zhenfa paying US$1.60 per share, while also funding a special dividend of US$0.85 per share for STR stockholders that are not associated with Zhenfa.

Zhenfa is a very highly regarded, vertically integrated enterprise in the burgeoning solar utility systems market. Having seen some of their installations first hand, I can attest to the large scale and scope of their endeavors and understand their desire to purchase modules utilizing components that maximize quality and protect their long-term investments, said Robert S. Yorgensen, president and chief executive officer at STR.

Yorgensen added, Zhenfa recognizes that a module is only as good as the encapsulant within and that STR products offer exceptional performance and service life. We expect our alliance with Zhenfa to significantly strengthen our existing relationships with many of the top-tier Chinese module manufacturers, and to help create important new relationships for STR within the world's largest solar module manufacturing market.

It is estimated that the deal will be closed in the Q4 of 2014.

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Source: TendersInfo (India)

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