China's A-Power Completes Evatech Acquisition
Shenyang-based A-Power Energy Generation Systems, Ltd., a provider of distributed power generation systems and a manufacturer of wind turbines, has received an Approval Certificate of Foreign Investment from China's National Development and Reform Commission and Ministry of Commerce to complete the acquisition of Evetech Company of Kyoto, Japan.
On September 16, 2009, the Company signed a definitive contract to acquire 100% of EVATECH, a 22-year-old designer and manufacturer of industrial equipment for liquid crystal displays, plasma display panels, and amorphous-silicon photovoltaic panels. The total consideration is USD49.9 million in cash.
Evatech is currently undergoing a rehabilitation process in the courts of Japan related to its corporate and debt restructuring. A-Power is to fund 100% of the transaction, 45% of which is expected to be reimbursed from foreign-investment grants from various levels of the local government in China. The transaction was expected to close prior to December 31, 2009; however, the A-Power applied to the courts in Japan for an extension of the funding date to January 25, 2010, which was granted.
