China’s Skycorp Solar Group will issue 12 million Class B shares to buy a 24% stake in Nanjing Cesun Power and proceed with a planned share consolidation pending board approval.
Chinese PV product supplier Skycorp Solar Group plans to acquire a 24% stake in Nanjing Cesun Power for approximately $8.7 million. Under the terms of the agreement, Ningbo-based Skycorp will pay for the acquisition by issuing 12 million B common shares to the seller of the shares, Skyline Tech Ltd.
The newly issued shares are subject to a five-year lock-up period, meaning Skyline Tech owns more than 13 million B ordinary shares in Skycorp, representing 97% of the company’s votes.
The deal is expected to close on or before December 20 and remains subject to customary closing conditions.
Skycorp’s existing product line focuses on solar energy products such as cables and connectors, while Nanjing Cesun is involved in the development of new power plants and inverter technologies.
Skycorp CEO Weiqi Huang said the transaction “marks a strategic expansion of the company’s investments in AI-driven energy technologies and green energy solutions.” He added that the move “will create new drivers of sustainable growth for the company.”
Late last week, Skycorp shareholders passed a resolution to consolidate authorized, issued and outstanding shares. The decision means that every 100 existing shares – or another agreed smaller number not less than 10 – will be converted into one new share that would have the same rights and restrictions, apart from the nominal value, as the old shares.
The company said in a statement that no fractional shares will be issued, with the number rounded up to the nearest whole share if necessary.
The move must be approved by the company’s board of directors within the next three years. The stakeholders have given the directors permission to record all necessary actions to carry out the share consolidation, if and when the board decides to proceed.
In November 2024, Skycorp filed for an initial public offering with the U.S. Securities and Exchange Commission, in an effort list on the Nasdaq. At the time, the company said it would offer 2.7 million shares priced between $4 and $5 each in an effort to raise up to $13.5 million. It started trading on the platform in early March.
This content is copyrighted and may not be reused. If you would like to collaborate with us and reuse some of our content, please contact: editors@pv-magazine.com.
