(Bloomberg) — China Ming Yang Wind Power Group Ltd., a
Zhongshan-based turbine maker, agreed to buy one of its largest
suppliers for about 925 million yuan ($149 million).
Ming Yang will acquire 99 percent of China Smart Electric
Group Ltd. this week and expects to buy the remaining 1 percent
in the Cayman Islands-based holding company, according to a
statement Monday.
China Smart, through various subsidiaries, owns all of
RENergy, a supplier of electrical components for wind turbines
that sold 794 million yuan of equipment to China Ming Yang last
year, according to the statement.
“RENergy’s product line of wind turbine control and
monitoring systems fits perfectly with our existing offerings,”
Chief Executive Officer Chuanwei Zhang said in the statement.
The first part of the deal is expected to close this week,
and the purchase of the remaining 1 percent of China Smart will
be complete “in the near future.” Payment will be a
combination of 300 million yuan in cash over the next 12 months
and 28.9 million newly issued shares of Ming Yang valued at
$3.49 each.
China Ming Yang’s American depositary receipts, each worth
one ordinary share, gained 0.9 percent to $3.52 at the close in
New York.
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Will Wade, Jim Efstathiou Jr.