China, Singapore, Solar

China’s Perfect Field in US$1.8 billion S’pore solar deal

Chinese solar energy group Perfect Field Investment said it would take over Singapore’s Rowsley in a deal worth S$2.7 billion ($1.8 billion) to fund its expansion as demand for renewable energy products grows.The company will produce solar modules, solar cells and panels.

“We expect substantial growth in the solar cell industry in the coming years. This growth will be driven by accelerating global demand for renewable energy,” Rowsley Chief Executive Koh Kim Huat said in a statement.

“A listing on the Singapore Exchange will enable us to tap the capital markets to fund the expansion of our production capacity,” said Ma Xin, the founder of Perfect Field.

As part of the deal, Rowsley will issue 18 billion new shares at S$0.15 per share to Totalpro Group and Ma, representing 92 percent of the company’s enlarged share capital.

Totalpro Group is owned by Ma, a Chinese scientist who is chairman of Perfect Field Group.

Ma founded the business in 2000, which is based in Jilin province and which provides solar technology to homes, businesses and industry. The group has a team of 50 scientists and owns patents for solar products and production processes.

Rowsley’s share price has risen more than fourfold in the past month, closing up 6.8 percent at S$0.315 on Wednesday. The firm is now worth $110 million on the stock market.

In the financial year to March 31, Perfect Field made a pretax profit of 23.4 million yuan ($3 million) on sales of 28 million yuan.

Perfect Field said it has provided a net profit guarantee of not less than S$300 million for each of the financial years ending June 30, 2008, 2009 and 2010.

This represents a forecast price-earnings ratio of about nine times based on the purchase price, the companies said.

Several small Singapore-listed companies have been taken over in the past few months, providing a route for unlisted firms to inject their assets.

Indofood Agri Resources Ltd. , Indonesia’s biggest branded cooking oil maker and plantation giant Wilmar International Ltd. have both used such structures to list in Singapore.

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3 thoughts on “China’s Perfect Field in US$1.8 billion S’pore solar deal

  1. Something I find slightly comical is how so many people will say that it isn’t worth it to add

    solar energy to your home because it takes too long for the system to “pay itself off”. If you

    save up the money and have a system installed you suddenly have a tiny utility bill, if any

    bill at all. To me it’s a simple cash-flow equation.

  2. David Young says:

    This RTO of Rowsley has been cancelled. The posted was originally released in May 2007. However, the following news was released on 12 Nov 2007 on Channel News Asia
    http://www.channelnewsasia.com/stories/singaporebusinessnews/view/311008/1/.html

    Investment firm Rowsley drops reverse takeover plan
    Posted: 12 November 2007 0916 hrs

    SINGAPORE : Rowsley Ltd said Sunday it will not complete a reverse takeover deal with Chinese power firm Perfect Field.

    Perfect Field has failed to meet a power generation benchmark stipulated in the takeover agreement and therefore the deal will not go ahead, Rowsley said.

    However, if Perfect Field separately seeks a listing on the Singapore Exchange, Rowsley will have an option to buy 5 percent of the company at a 25 percent discount to the initial public offer price.

    “By the time of the initial public offering, we will have greater clarity on its production capacity, its growth potential and the valuation put on its business,” said Koh Kim Huat, Rowsley’s chief executive.

    Under an agreement announced in May, Rowsley planned to buy Perfect Field by selling its owners 18 billion new shares, which would have made them Rowsley’s largest shareholders. – CNA/ch

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