O’Melveny Represents Solarfun Power Holdings Co., Ltd. in US$370 Million Strategic Investment by Hanwha Chemical CorporationAugust 09, 2010
FOR IMMEDIATE RELEASE
O'Melveny & Myers LLP
O'Melveny & Myers LLP
HONG KONG ─ AUGUST 9, 2010 ─ O’Melveny & Myers LLP represented the Special Committee of the Board of Directors of Solarfun Power Holdings Co., Ltd., ("Solarfun" or the "Company"), in its strategic transaction with Hanwha Chemical Corporation ("Hanwha Chemical"), that will give Hanwha Chemical a 49.99% stake in Solarfun.
The US$370 million transaction includes the issuance of approximately US$78 million of newly issued shares by the Company as well as the exit sale by Solarfun’s two largest shareholders - its founding Chairman, Mr. Yonghua Lu, and its largest investor, Good Energies II LP. Solarfun intends to use the proceeds from the investment to fund the Company's expansion plans and for general corporate purposes.
“The transaction reflects the growing interest of strategic and financial investors in the booming Chinese renewable energy sector as worldwide demand for renewable energy surges” said O’Melveny & Myers partner Doug Freeman. Freeman, based in Hong Kong, co-led the team with partner Steven Tonsfeldt, based in the firm’s Silicon Valley office. The core O'Melveny team also consisted of counsel Victor Chen and associate Stephanie Sheng.
Solarfun Power Holdings Ltd. (NASDAQ: SOLF) is a leading manufacturer of solar PV cells and modules in China, focusing on delivering high quality and reliable products at competitive prices. Solarfun produces its monocrystalline and polycrystalline products at its internationally certified, vertically-integrated manufacturing facilities. Solarfun partners with third-party distributors, OEM manufacturers, and system integrators to sell its modules into large-scale utility, commercial and governmental, and residential/small commercial markets. Solarfun maintains a strong global presence with local staff throughout Europe, North America, and Asia. Solarfun embraces environmental responsibility and sustainability by taking an active role in the photovoltaic cycle voluntary recycling program.
About Hanwha Chemical Corporation and Hanwha Group
Hanwha Chemical Corporation, established in 1965, is a leading chemical producer whose principal activities are the production of CA (chlor-alkali), PE (polyethylene) and PVC (polyvinyl-chloride) products. The company is publicly traded on the Korea Exchange and generated revenues of US$ 2.6 billion in 2009. HCC has identified solar energy, along with advanced batteries, nanotechnology-based materials, and biopharmaceuticals/biosimilars, as key growth platforms. HCC entered the solar industry in 2009 with the construction of a 30MW cell production facility located in Ulsan, South Korea, and has plans to expand globally across the solar value chain to become a vertically-integrated player.
HCC is an affiliate of Hanwha Group, one of Korea's 10 largest conglomerates. Hanwha Group has 46 affiliates of which six are publicly traded, including HCC and Korea Life, the second largest insurance company in Korea. In 2009, Hanwha Group had assets of approximately US$ 68 billion and total revenues of approximately US$ 30 billion. Originally established as an industrial explosives manufacturer in 1952, Hanwha Group has actively expanded through both organic growth and acquisitions and is now engaged in three core business areas: chemicals and construction, financial services, and service & leisure.
About O’Melveny & Myers LLP
With approximately 1,000 lawyers in 14 offices worldwide, O’Melveny & Myers LLP helps industry leaders across a broad array of sectors manage the complex challenges of succeeding in the global economy. We are a values-driven law firm, guided by the principles of excellence, leadership, and citizenship. Our commitment to these values is reflected in our dedication to improving access to justice through pro bono work and championing initiatives that increase the diversity of the legal profession. For more information, please visit www.omm.com .