Chinese Solar Company to Buy Germany's SAG Solarstrom
German solar firm SAG Solarstrom AG, which filed for insolvency late last year, said on Saturday it agreed to be acquired by Shunfeng Photovoltaic International for 65 million euros ($85 million).
The small German company, which builds and operates solar power plants, said all jobs were safe and additional jobs would be created under Shunfeng's growth strategy for the business.
Solar companies have been under pressure from plunging prices for solar panels and cells, which convert sunlight into electricity, caused by a global glut of the equipment.
Some of the companies, including Q-Cells, Solon and Conergy, have filed for insolvency in the last few years and have subsequently been broken up and parts of the businesses sold.
SAG Solarstrom said according to the assessment of its insolvency administrator, Joerg Nerlich, its creditors - including holders of two corporate bonds - could expect to receive almost 50 percent of the company's insolvency assets.
"However, depending on the actual result, the insolvency quota might also be considerably below or above this value," it said.
SAG Solarstrom was founded in 1998 and went public a year later. It had earnings before interest and tax (EBIT) of 8.9 million euros in 2012 on sales of 188.6 million.
(Reporting by Maria Sheahan. Editing by Jane Merriman)
($1 = 0.7616 euro)