Made a great 170% profit from this trade, freaking awesome!!
That said, I found this on the yahoo message board, and from what I can find, it is abolutely correct.
"And Wuxi Suntech is absolutely not STPFQ. Wuxi Suntech is now wholly owned by Shunfeng. STPFQ, based in the CAymans, is a shell holding company that the last I checked only holds a few worthless assets like a US sales division and some plants in Italy that were questionable. All manufacturing and production assets and all the technology portfolio was sold to Shunfeng when they bought Wuxi Suntech. You are not buying that part of the business when you buy STPFQ, and can't buy it since Shunfeng owns it. If you buy STPFQ, you are buying a Caymans shell holding company currently holding a few almost worthless assets with nothing behind them anymore."
"Shunfeng bought "Suntech Wuxi", Suntech' s main asset, and not
Suntech (the company). Shunfeng kept the name "Suntech Wuxi" and some times may be confusing to differentiate between the two.
Cheng Kin Ming, also known as Zheng Jianming, is a real-state billionaire from Hong Kong. In 2012 he purchased a 30% stake in a company called Shunfeng Photovoltaic. Zheng also owns 21.6% of LDK Solar.
The cherry on top of that was the 2013 Suntech acquisition.
Zheng’s Shopping Spree:
2012 – Buys a 21.6% stake in bankrupt LDK and a 30% stake in Shunfeng (an investment that has increased 17-fold in value by now).
2013 – Shunfeng acquires Suntech Wuxi in exchange for Shunfeng paying 30% of Suntech’s debt, which was about $1.75B, to Chinese creditors.
2014 – The Suntech deal closes. In May–June, Shunfeng announces it is looking to develop projects in Europe and that it is closing on four new acquisitions, including a U.S.-based energy storage business.
Suntech Wuxi was purchased by Shunfeng Photovoltaic. How were they able to finance that ~$400M acquisition? The deep pockets of Zheng. Zheng knew how to leverage his financing ability even further, and agreed on paying for the acquisition in exchange
for convertible bonds.
Those convertible bonds can get him more than 67% of the combined company if they are converted. Shunfeng has also pledged to invest almost $500M in Suntech Wuxi facilities over the next 24 months, which could provide Suntech across-over-the board equipment upgrades and re-position the company as cost competitive."
The Bottom Line is STPFQ No Longer Represtents an Entity That Manufactures Solar Panels...
