China MingYang Wind Power Acquires RENergy for Advanced R&D

published: 2015-05-19 15:55 | editor: | category: News

China Ming Yang Wind Power Group Limited (Ming Yang) announced that it has acquired a 99% stake in China Smart Electric Group Limited, a Cayman Islands company that owns all of the equity interest in Wise Renergy Holdings Limited, which in turn owns all of the equity interests in mainland China-based subsidiaries, Tianjin REnergy Electrical Co., Ltd. and Tianjin Ruiyuan Electrical Co., Ltd. (all such Renergy entities are collectively referred to as "RENergy"). Ming Yang expects to acquire the remaining 1% stake in RENergy in the near future.

In exchange for a 100% stake in RENergy, Ming Yang will pay a total purchase consideration of approximately RMB925.4 million (US$149 million at the exchange rate of RMB6.2048 to US$1.00).

The acquisition is expected to create significant synergies between Ming Yang and RENergy. Upon completion of the acquisition, Ming Yang will integrate RENergy's patented electrical control system technologies into Ming Yang's existing product offerings, allowing Ming Yang to evolve further to become a provider of comprehensive wind energy solutions and to address a wider range of its customers' requirement. For instance, Ming Yang will be able to provide services to upgrade wind farms in order to generate more electricity and to reduce overall costs of generating electricity borne by customers in different locations and under different weather conditions. Furthermore, the versatility of RENergy and its offerings are poised to extend the scope of services that Ming Yang can provide, thereby enabling Ming Yang to offer services that add value on the basis of big data and to develop smart energy systems and control systems with remote access.

Accordingly, the acquisition is expected to result not only in lower costs for customers by consolidating both companies' procurement and research and development processes, but it also is expected to help Ming Yang deploy capital more efficiently, improve the overall quality of its products, and boost customer satisfaction.

"The acquisition of RENergy marks a milestone in our transition to become a technology-driven, service-centric provider of comprehensive wind energy solutions,” commented Mr. Chuanwei Zhang, Chairman and Chief Executive Officer of Ming Yang. “RENergy's product line of wind turbine control and monitoring systems fits perfectly with our existing offerings, and going forward we believe that we will be able to harness significant business synergies to generate further value for shareholders."

(Photo Credit: MingYang Wind Power)

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