Solar Power Inc (OTCMKTS:SOPW) has recently announced a strategic partnership with Kong Sun Holdings. As per the agreement, the former would provide the latter with finance lease services, for PV power systems in China. Additionally, the company also announced the acquisition of Energiebau Solar Power GmbH. As per the announcement one of the subsidiaries of SOPW entered into an agreement with Energiebau to buy off some of its assets. The two new agreements expand the workings of Solar Power geographically towards China and Europe.
Kong Sun Holdings is a China based company, which focuses on PV power stations. As per the agreement, SOPW will provide a finance lease of RMB1 million for the PV power projects in China. However, the exact terms of the agreement have not yet been finalized for the lease and it remains uncertain when the projects are due to begin. The only thing agreed upon is the length of the contract, which is going to be held valid for a period of 2-years, with an expected 1-year extension on agreement.
Energiebau is based in Europe and has an effective wholesale business model. The company supplies complete solar power systems to consumers. Additionally, Energiebau has links throughout the industry. SOPW hopes that it can make use of these links to provide an interface between traders and manufacturers. Analysts believe that the acquisition has great potential and can bridge the gap between the demand and supply of solar power solutions.
Solar Power announced that the acquisition of Energiebau might be one of the best decisions made by the company thus far. They also revealed that Energiebau is a renowned supplier of solar equipment in Europe and Solar Power would be hoping to make use of this fact for its business. SPI has been facing stiff competition in the market and business has been a bit slow, but the company hopes that all this would change now.
Solar Power Inc (OTCMKTS:SOPW) did not report any change during the June 8 session, despite trading 602.98 million shares. The stock closed at a share price of $1.97.