Actis Sells Shunda Stake

Actis has sold its stake in Shunda Holdings Co Ltd., a China-based upstream supplier to the solar power industry, to Suntech Power Holdings Co. Ltd. (NYSE: STP) and an undisclosed investor. No financial terms were disclosed. 

 

PRESS RELEASE 

Actis, a leading private equity investor in emerging markets, announced that it has sold its stake in Shunda Holdings Co Ltd (Shunda), an upstream supplier to the solar power industry, to Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic (PV) cells and modules, and another investor.

 

The transaction forms an important strategic relationship between Shunda and Suntech, a company in which Actis invested and helped to list on the New York Stock Exchange in December 2005. Both companies will benefit from closer vertical integration of the solar energy production chain.

 

Actis led an investment in Shunda in 2006. The funds were used to build a factory to produce poly-crystalline silicon (poly-si), an essential raw material for the solar power industry that is in acute short supply globally.  Shunda uses poly-si to make mono-crystalline silicon (mono-si) ingots and wafers. The ingots and wafers, in turn, are used by manufacturers like Suntech to make solar cells and panels that turn sunlight into electricity.  Shunda is an extension of Actis's early investment in China's solar energy industry, which began in 2005 when Actis invested in Suntech, one of China's first solar power companies, and is a demonstration of Actis's commitment to investing in businesses that contribute to energy stability in a lower carbon world.

 

Dr. Zhengrong Shi, Suntech's Chairman and CEO, said: “We are proud to be able to contribute to Shunda's efforts to construct a world-class poly plant, which will help to alleviate shortages when it commences production later this year.  This is the second time we have partnered with Actis.  We are glad to be able to leverage on our solid relationship with Actis to conclude this transaction with Shunda.”

 

Commenting on the sale, Mr. Lim Meng Ann, Actis's Head of China, said:

“We are delighted to have brought together two outstanding solar companies that we have invested in.  Through this transaction, Shunda develops a close relationship with an important customer and Suntech gains reliable access to a raw material that is currently in short supply.  This case is a fine example of Actis creating a win for all sides and demonstrates how we focus on adding value to our investee company partners.”

 

Mr. Yunda Ni, the Chairman of Shunda, added:

“Our poly plant will not only transform our business but will also help China in its drive towards poly-si self sufficiency. Actis has played a critical role in the success of Shunda's poly-si project. In addition to providing capital, Actis helped Shunda choose an industry leading poly-si technology platform.”

 

 

Actis

Actis is a leading private equity investor in emerging markets. To date Actis has US$6.8bn of funds raised and significant investments in Africa, China, India, Latin America, South and South East Asia. Actis has over 120 investment professionals on the ground in 14 offices worldwide and has been investing exclusively in the emerging markets for 60 years.

 

Actis was one of the earliest private equity firms to establish an on-the-ground presence in China, setting up in 2000. Its office of 14 professionals in Beijing is supported by team specialists in London, including experts in the energy field. Investments in China include CNOOC, Mengniu, Suntech and Grentech. In addition to Shunda, Actis's current investment portfolio also includes Taizinai, a leading manufacturer of yoghurt drinks.

 

Shunda Holdings Co., Ltd

Founded in 2003, Shunda has rapidly grown to become one of China's leading producers of mono-crystalline silicon ingots and wafers. Shunda is in the advanced stages of developing a world-class polysilicon plant in Yangzhou, Jiangsu Province China with a first phase capacity of 1,500 metric tons.

 

Suntech

Suntech Power Holdings Co., Ltd. is a world leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK Solar Design Line(TM). Suntech has sales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com .