Suntech Power Holdings Co., owner of the Chinese solar manufacturer forced into bankruptcy in March, agreed to sell a project and discounted panels to Shunfeng Photovoltaic International Ltd. for 93 million yuan ($15.2 million).
Shunfeng bought a 99 percent stake in the project for 3.96 million yuan, it said in a Hong Kong Stock Exchange filing today. Shunfeng, which hasn’t developed projects before, will use 29.7 megawatts of Suntech panels to build the Kumul solar plant in China’s Xinjiang region near the China-Mongolia border.
The panels will be sold in installments for a total of 89 million yuan, the Changzhou, China-based company said. The 49-cent per-watt price is 32 percent less than the 72-cent average for solar panel prices as of May 22, according to a Bloomberg survey.
“Maybe they just need to generate cash, and in view of anti-dumping developments in Europe, China is the most important market for Suntech,” Stefan de Haan, analyst for IHS - Solar Research in Munich, said today in an e-mailed response to questions. “If they want to sell at all, they need to sell in China.”
The company’s American depositary receipts fell 20 percent to $1.02 at the close in New York, the most in a month. Each ADR is worth one ordinary share.
Suntech said last year it was targeting selling panels at 75 cents a watt by the end of 2012, with costs of 60 cents a watt excluding polysilicon. Suntech’s main unit was forced into bankruptcy proceedings in March after eight Chinese banks filed a petition for insolvency.