Thursday, March 7, 2013

Suntech reaches settlement in connection with GSF Investment

CHINA: Suntech Power Holdings Co. Ltd has settled all outstanding disputes with GSF Capital Pte Ltd and Javier Romero in connection with a guarantee provided by GSF Capital to Suntech.

As part of the settlement, GSF Capital will dispose of its entire ownership interest in Global Solar Fund, S.C.A., Sicar for an agreed consideration and it will no longer have any ownership interest in the Fund. Suntech's equity interest in the Fund will increase from 79.3 percent to 88.15 percent and the equity interest owned by Best (Regent) Asia Group Ltd., a company ultimately held by Dr Zhengrong Shi, will increase from 10.7 percent to 11.85 percent. Due to the change of control of the Fund, Suntech will consolidate the Fund upon completion of the related equity transfer.

In addition, the court orders obtained by Suntech will be discharged. The settlement does not involve an admission of liability on the part of GSF Capital or Mr Romero.

David King, Suntech's CEO, said: "We are very pleased to have reached this settlement. The new ownership structure will ensure that Suntech has full control of the Global Solar Fund and can manage and operate the Fund's portfolio of solar plants to maximise the value for our stakeholders."

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