Kawa Buys More Conergy Units, Investors Look at Module Plant
Kawa Capital Management Inc. will buy more units of Conergy AG (CGYK), a German solar company that filed for protection from creditors in July, as the U.S. private-equity firm expands into funds investing in the industry.
Kawa will buy German sales and services units Conergy Deutschland and Conergy Services and units in the U.S., Canada, Singapore and Thailand, the Hamburg-based company said today in an e-mailed statement. Kawa won’t take Spanish, French, Greek, Czech or Indian units, Conergy said, without disclosing terms.
The deal gives Kawa “the necessary know-how for the global planning, construction and operation of solar power plants,” Andrew de Pass, a partner at the firm, said in the statement. “We are stepping on new paths and will expand our business activities to funds that invest in solar plants.”
Conergy is also talking to seven potential investors from Europe and Asia about the sale of its German module factory in Frankfurt an der Oder, the company said in a separate statement. The company’s administrator is “confident” about reaching an agreement with one of the investors by the end of next month.
Subsidies for renewable energy are falling as German and Chinese competition shrinks panel prices and margins. German producers that have filed for protection from creditors since late 2011 include Solar Millennium AG (S2M) and Q-Cells SE, once the world’s biggest maker of solar cells.
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