China’s JA Solar concludes share transfer agreement with M.Setek

31 July 2012 14:14  [Source: ICIS news]

SINGAPORE (ICIS)--China’s JA Solar Holdings announced on 30 July that it has concluded a share transfer agreement with Japan’s M.Setek, a company source from JA Solar said on Tuesday.

M.Setek failed to make the majority of a scheduled polysilicon delivery in 2011 to JA Solar Holdings because of the 11 March earthquake and tsunami and hence entered a framework agreement with JA Solar in March 2012 to settle outstanding prepayments of $69.1m (€56.7m), according to the source.

Under the agreement, M.Setek agreed to transfer its 65% equity interest in China-based Hebei Ningjin Songgong Semiconductor to JA Solar Hong Kong, a wholly owned subsidiary of JA Solar, and the transfer for $38.9m will be completed by the end of this year.

Moreover, M.Setek has repaid $11m to JA Solar in June 2012, with dividends distributed by China’s Ningjin Songgong Semiconductor, according to the agreement.

For the remaining unused prepayments, M.Setek will continue to deliver polysilicon to JA Solar pursuant to a supply agreement.

JA Solar is a manufacturer of high-performance solar power products for residential, commercial, and utility-scale power generation.

($1 = €0.82)

By: Viola Pan
+65 6780 4359

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