XINYU CITY, China and SUNNYVALE, Calif., February 26, 2010 — LDK Solar Co., Ltd. (NYSE: LDK), a leading manufacturer of multicrystalline solar wafers, has recently announced that it has entered into an agreement to acquire the crystalline module manufacturing plant of Best Solar Co., Ltd. (“Best Solar”). Under the terms of the transaction LDK Solar will acquire Best Solar`s crystalline module manufacturing plant at cash consideration of $21.5 million, representing the fair value of the assets acquired determined on an arms-length basis.
“This acquisition will significantly enhance LDK Solar`s position in the downstream PV market,” stated Jack Lai, Executive Vice President, Chief Financial Officer, and Secretary of LDK Solar. “LDK Solar has been fulfilling the majority of its solar module needs through purchases from Best Solar over the past three quarters. We look forward to realizing cost efficiencies by bringing crystalline module manufacturing in-house. This acquisition represents an important step as we continue to expand the scope of our vertical integration and strengthens our competitive advantage within the sector.”
Best Solar is wholly owned by LDK New Energy Holding Limited, which is LDK Solar’s controlling shareholder, and wholly owned by Mr. Xiaofeng Peng, Chairman and CEO of LDK Solar. The terms of the agreement have been reviewed and approved by LDK Solar and Best Solar on an arms-length basis using the fair market value of the acquired assets. The fair market value was determined by a valuation analysis performed by a third party independent valuer and approved by LDK Solar`s management team and Audit Committee. Best Solar has undertaken not to engage, and therefore compete with LDK Solar, in the module business after this transaction is completed.
About LDK Solar (NYSE: LDK)
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK Solar’s headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People’s Republic of China. LDK Solar’s office in the United States is located in Sunnyvale, California.
About Best Solar
Best Solar Co., Ltd. is one of the world’s largest solar panel solution providers for both thin film and crystal solar modules. Best Solar has two sites, Best Solar Suzhou and Best Solar Nanchang, which are designed to produce thin film solar panels as well as crystalline solar panels in phases. Best Solar’s partnership with the leading solar equipment provider Applied Materials and other major equipment suppliers allows Best Solar to use the most advanced technology in the thin film as well as the crystal solar market. In addition to the thin film product, Best Solar provides a whole spectrum of products that cover all of the most popular multicrystalline and monocrystalline modules in market place. By providing both thin film and crystal solar panel solutions in large volume, Best Solar is uniquely positioned to ensure its customers success in their competitive market places. Following the acquisition of its crystalline module plant by LDK Solar, Best Solar will no longer produce crystalline modules and will solely focus on the thin film portion of its business.
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