Estimated read time: 4-5 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
[STK] NASDAQ-NMS:CSUN
[IN] OIL UTI ENV ALT GRE EUT
[SU] TNM
TO BUSINESS, ENERGY, AND ENVIRONMENTAL EDITORS:
China Sunergy Announces the Sale of an Idle Subsidiary
NANJING, China, March 27, 2014 /PRNewswire/ -- China Sunergy Co., Ltd.
(NASDAQ: CSUN) ("China Sunergy" or "the Company"), a specialized solar
cell and module manufacturer, today announced that the Company has
signed a share transfer agreement with its affiliated company, China
Electric Equipment Group Co., Ltd. ("CEEG"), under which the Company
agreed to sell and CEEG agreed to purchase, 100% of the equity
interest in China Sunergy (Shanghai) Co., Ltd. ("Sunergy Shanghai"), a
subsidiary of the Company, for a total consideration of approximately
RMB 231.2 million (US$37.7 million) (the "Total Consideration") (the
"Transaction").
As a result, China Sunergy expects to receive the cash proceeds of
approximately RMB 79.6 million (US$13.0 million) from the Transaction
in the second quarter of 2014. The remaining consideration will be
settled through forgiveness of the amount due from China Sunergy by
Sunergy Shanghai. As part of this Transaction, CEEG expressly
undertakes that it will not utilize Sunergy Shanghai or its assets to
engage in any business competitive with the Company. The Transaction,
which was approved by China Sunergy's board of directors, is subject
to customary closing conditions.
Sunergy Shanghai was established by the Company in November 2007, with
an original plan for solar cell production, solar power research, and
other developmental activities. However, due to market conditions and
the Company's strategic planning, Sunergy Shanghai has not yet
developed substantive operations, and as such the disposal of Sunergy
Shanghai will not impact China Sunergy's overall production capacity.
Mr. Stephen Cai, CEO of China Sunergy, commented, "The sale of Sunergy
Shanghai follows an extensive and thoughtful evaluation of potential
options relating to sale of Sunergy Shanghai, and we fully expect the
cash proceeds from the sale will further strengthen our working
capital and enhance our operations. We believe these resulting
improvements will contribute meaningful long-term rewards to the
Company."
About China Sunergy Co., Ltd.
China Sunergy Co., Ltd. (NASDAQ:CSUN) designs, manufactures and
delivers high efficiency solar cells and modules to the world from its
production centers based in China and Turkey. China Sunergy also
invests in high potential solar projects. Founded in 2004, China
Sunergy is well known for its advanced solar cell technology, reliable
product quality, and excellent customer service.
For more information, please visit http://www.csun-solar.com.
Investor and Media Contacts:
Asia Bridge Group Limited Wendy Sun Phone: + 86 10 8556 9033 Email:
wendy.sun@asiabridgegroup.com
China Sunergy Co., Ltd. CSUN IR Phone: + 86 25 5276 6696 Email:
IR@chinasunergy.com
Safe Harbor Statement
This announcement may contain forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements of
historical facts in this announcement are forward-looking statements.
These forward-looking statements are based on current expectations,
assumptions, estimates and projections about the Company and the
industry, and involve known and unknown risks and uncertainties,
including but not limited to, the Company's failure to maintain its
listing qualification due to, among other things, volatility in the
Company's ADS price; the Company's ability to raise additional capital
or renew existing bank borrowings as they become due to finance the
Company's activities; the Company's customers' financial condition and
creditworthiness, and their ability to settle accounts receivables;
the effectiveness, profitability, and the marketability of its
products; litigations and other legal proceedings, including any
decisions by the US International Trade Committee and Department of
Commerce on the petitions filed; the economic slowdown in China and
elsewhere and its impact on the Company's operations; demand for and
selling prices of the Company's products, execution of our strategy to
expand into downstream solar power businesses, the future trading of
the common stock of the Company; the ability of the Company to operate
as a public company; the period of time for which its current
liquidity will enable the Company to fund its operations; the
Company's ability to protect its proprietary information; general
economic and business conditions; the volatility of the Company's
operating results and financial condition; the Company's ability to
attract or retain qualified senior management personnel and research
and development staff; future shortage or availability of the supply
of raw materials; impact on cost-competitiveness as a result of
entering into long-term arrangements with raw material suppliers and
other risks detailed in the Company's filings with the Securities and
Exchange Commission. The Company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events or
circumstances, or to changes in its expectations, except as may be
required by law. Although the Company believes that the expectations
expressed in these forward looking statements are reasonable, it
cannot assure you that its expectations will turn out to be correct,
and investors are cautioned that actual results may differ materially
from the anticipated results.
SOURCE China Sunergy Co., Ltd.
-0- 03/27/2014
/Web Site: http://www.csun-solar.com
(NASDAQ-NMS:CSUN) /
CO: China Sunergy Co., Ltd.; China Electric Equipment Group Co., Ltd.; China Sunergy (Shanghai) Co., Ltd.
ST: China
IN: OIL UTI ENV ALT GRE EUT
SU: TNM
PRN
-- CN92110 --
0000 03/27/2014 11:00:00 EDT http://www.prnewswire.com
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
