Conergy Finalizes Agreement with Asian Investor
Conergy of Germany would be nearing the completion of a deal that would make an Asian investor as the owner of a substantial stake in the firm. Conergy was once the top solar energy firm in the country and now seeks to retain its leadership with the investment, as confirmed by two anonymous individuals with Reuters.
According to the sources, the unnamed investor would be assuming the Eur261.5 million or US$340 million syndicated loan agreement between Conergy and ten different financial institutions. Once of the banks who provided the syndicated loan was Commerzbank back in 2011. Aside from the loan, the Asian investor would be infusing Eur50 million worth of equity into the company.
Conergy's shares jumped by 12% to Eur0.395 per share after the news broke of the investor. For its part, Conergy's spokesperson declined to make any comment.
Conergy, for 2012 registered sales valued at Eur473.5 million and an operating loss of Eur83 million. It was formerly the biggest solar company in Europe but was ravaged by falling prices of solar panels, with much of the competition falling into insolvency because of the market conditions.