LDK to acquire 70% of Solar Power, Inc.

LDK Solar agreed to acquire a 70 per cent interest in Solar Power Inc. for approximately $33 million. 

The transaction will enable the acceleration of SPI’s development of its project pipeline, which primarily consists of utility-scale power plants and commercial/industrial distributed generation systems.  SPI’s growing development portfolio and pipeline, in turn, should provide LDK Solar with enhanced downstream benefit to its vertical integration model through module supply for large scale projects.

In addition, LDK Solar will purchase certain components of SPI’s manufacturing equipment and assume total manufacturing control of SPI’s former module manufacturing facility in Shenzhen, China.  SPI will maintain a separate logistical team in Shenzhen to enhance project development, design and related project management functions at a new location in Shenzhen. 

The transition in manufacturing is strategic; allowing SPI to focus on development and construction of large scale and utility scale U.S. solar projects, while maintaining product quality and enhancing its competitive position.