A-Power To Acquire Thin-Film Developer Evatech

A-Power Energy Generation Systems Ltd. has signed a Memorandum of Understanding (MOU) to acquire 100% of Evatech Co. Ltd., a designer and manufacturer of industrial equipment for LCDs (liquid crystal displays) and PDPs (plasma display panels). The all-cash transaction is initially valued at $50 million and is expected to be primarily funded through a combination of government subsidies and loans.

Government subsidies are expected to amount to 40% to 45% of the total purchase price, and auditors in Japan are currently preparing a fairness opinion for the transaction. A-Power expects to sign a definitive purchase agreement with Evatech by September and close the transaction by 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’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.”