China Solar (00155) buys thin film solar business at HK$350m

  <ET Net News Agency, 8 February 2011>  China Solar Energy (00155) said it entered into
an acquisition agreement with Yeung Ngo, Profit High Group Limited and Time Across Limited
regarding the possible acquisition of the entire issued share capital of Stream Fund High
-Tech Group Corporation Limited at HK$350 million.
  It is expected the transaction will be completed on or before 8 August 2011. The
consideration will be settled as to about HK$309 million by the issue of consideration
shares and the balance of about HK$40.742 million by the issue of five-year non-interest
bearing convertible notes. The issue price of the consideration shares and conversion
price of the convertible notes are both HK$0.1242 apiece, representing a discount of about
5.91% to the closing price of HK$0.132. The aggregate of the consideration shares and
conversion shares will represent about 28.24% of the enlarged issued share capital of
China Solar Energy. The consideration represents a discount of about 19.07% to the net
assets value of Stream Fund High-Tech of about HK$445 million as at 31 December 2010.
  Stream Fund High-Tech fully owns Changzhou Stream Solar Energy Co., Ltd and Dali Stream
Fund Photoelectricity Energy Co., Ltd, which are mainly engaged in production and sale of
amorphous silicon thin film solar photovoltaic modules and related accessories as well as
production and sale of thin film solar photovoltaic modules and its related accessories
respectively.
  China Solar Energy believed the acquisition represents a valuable opportunity to the
Group to extend its business from a total solution provider of thin film production
equipment and a supplier of Vetrogrid for building integrated photovoltaics (BIPV) systems
to production of thin film solar modules as well as design, fabrication and installation
of thin-film BIPV system.  
  Trading in shares of China Solar Energy has been resumed this morning.