Integrated photovoltaic product manufacturer Yingli Green Energy has acquired the Cyber Power Group. To fund the acquisition, Yingli has used cash on hand and said to issue senior secured convertible notes due 2012 to Trustbridge Partners II.
Pursuant to a share purchase agreement entered into between Yingli Green Energy and the Grand Avenue Group, Yingli has acquired 100% of the issued and outstanding share capital of Cyber Power.
Cyber Power, through Fine Silicon, its principal operating subsidiary in China, is a development-stage enterprise with plans to begin production of solar-grade polysilicon in the second half of 2009.
Pursuant to the agreement, Yingli Green Energy has paid Grand Avenue approximately $77.6 million, of which $25 million had been paid in November 2008 pursuant to the previously announced binding letter of intent relating to the Cyber Power acquisition.
The final acquisition price was determined based on a 4% discount to the net tangible book value of Cyber Power as of November 30, 2008. Proceeds from the Cyber Power acquisition will be used by Grand Avenue to repay in full all of its outstanding indebtedness incurred to date in connection with the construction of the polysilicon operations of Fine Silicon.
The company has also entered into a note purchase agreement with Trustbridge, an affiliate of Gold Sight International, the former minority shareholder of Cyber Power, for up to $50 million in notes, $20 million of which will be issued in connection with the financing of the Cyber Power acquisition. The $20 million tranche of the notes are expected to be issued on or about January 16, 2009.
Yingli Green Energy Holding Company is a vertically integrated Photovoltaic (PV) product manufacturers. Through the company’s principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources, the company designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis.