ReneSola to buy Dynamic Green Energy for US$88.5 mln

Sep. 28, 2009 (China Knowledge) - ReneSola Ltd<SOL>, a leading solar wafer manufacturer in China, on Wednesday announced that it plans to issue 26.79 million ordinary shares and US$10 million in convertible promissory notes in exchange for ownership of Dynamic Green Energy Ltd, which is valued at US$88.5 million, sources reported.

Dynamic Green Energy has long-term contracts with SunPower Corp and Evergreen Solar through wholly-owned unit Jiawei Solarchina Co Ltd and other Chinese units. As of Jun. 30, Dynamic Green Energy's annual production capacity had reached 155 megawatts of photovoltaic modules and 25 MW of solar cells.

In August, ReneSola CEO Li Xianshou said that the company expects to see a loss in the third quarter of this year despite revenue from a new 150-MW project.

The firm recently said it aims to realize between US$130 million and US$140 million in revenue in the third quarter, and that it hopes to reap between US$470 million and US$500 million in revenue this year. 

However, it was not clear whether the firm's forecasts included the Dynamic Green Energy deal.