Strategic Partnership with Hanwha
As previously announced, the strategic investment in Solarfun by Hanwha Chemical Corporation has been completed, giving Hanwha a 49.99% interest in the Company. The total proceeds to Solarfun amounted to approximately $78 million USD, which Solarfun expects to use to fund its expansion plans and for general corporate purposes . Hanwha also purchased shares from Good Energies II LP and Yonghua Solar Power Investment Holding Ltd. in separate independent transactions.
Following these transactions" conclusion, three representatives of Hanwha were appointed to the Company’s Board, now composed of four independent directors and three appointees from Hanwha. (For the full details of these transactions and biographies of new Board members, please refer to the public release on October 08, 2010.)
This strategic partnership with Hanwha provides a number of synergistic growth opportunities for the Company that includes the following.
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Hanwha is a large, well-capitalized Korean conglomerate with global reach, branding, and access to capital.
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Hanwha has identified solar power as the Company’s primary growth opportunity in the future.
Through Solarfun as its flagship vehicle, it plans to be a Top 3 Global Solar Player by 2015.
Hanwha is a large, well-capitalized Korean conglomerate with global reach, branding, and access to capital.
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Hanwha intends to aggressively pursue upstream businesses, such as polysilicon, and downstream businesses, such as solar project development, management, and financing.
Their existing capabilities and resources in chemicals, engineering and construction, and life insurance uniquely position Hanwha for pursuing these goals.
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The two companies joint efforts provide a “virtual” vertically-integrated Solar Business Unit with brand, scale, and low-cost production.
This virtual integration strategy also spreads the business risk and capital requirements across the two organizations.
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