Replies to post #221 on Solarfun Power Holdings Co. Ltd. (SOLF)

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Solarfun: Hanwha Chemical To Acquire Nearly 50% Stake

* Some Directors Say No To 3D
* Cognizant Shares Jump On Surprisingly Strong Q2, Outlook

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By Eric Savitz

South Korea-based Hanwha Chemical has agreed to take a 49.99% stake in China-based Solarfun (SOLF), triggering a big early rally in SOLF’s shares.

Hanwhat will acquire 36,455,089 SOLF ordinary shares at 14.51 RMB, a price equal to $2.144 per ordinary share, or $10.72 per ADS, for proceeds of $78 million. SOLF will use the cash to fund expansion plans and for general corporate purposes. Also, Hawwha will acquire all 120,407,700 additional ordinary shares and 1,281,011 American Depositary Shares held by investment firm Good Energies II LP and by Yonghua Solar Power - a company owned by Solarfun chairman Yonghua Lu.

Hanwha’s total investment comes to $370 million.

On completion of the deal, Hanwha will get three of the solar company’s seven board seats.

Meanwhile, Solarfun this morning reported Q2 revenue of $258.5 million and non-GAAP profits of 59 cents a share, ahead of the Street at $212.8 million and 25 cents. The company said average selling prices were down 6.8% in the quarter from Q1; shipments were 204.8 MW.

For Q3, the company sees shipments of 210-220 MW, with ASPs up 3%.

SOLF this morning is up $1.85, or 18.1%, to $12.10.