DGAP-News: S.A.G. Solarstrom AG: Shunfeng Group takes over operative business and assets of S.A.G. Solarstrom AG


DGAP-News: S.A.G. Solarstrom AG / Key word(s): Acquisition
S.A.G. Solarstrom AG: Shunfeng Group takes over operative business and
assets of S.A.G. Solarstrom AG

30.08.2014 / 18:15

---------------------------------------------------------------------

Shunfeng Group takes over operative business and assets of S.A.G.
Solarstrom AG

- Operative business with all business areas will be continued 
- New site in Merzhausen will become European headquarters 
- Additional jobs under the growth strategy 
- Above-average insolvency quota expected

Freiburg i. Br., August 30, 2014. S.A.G. Solarstrom AG (under insolvency
proceedings) (German security identification number: 702 100, ISIN:
DE0007021008) today concluded a contract for the acquisition of operative
business operations of the S.A.G. Group, including all assets, with SF
Suntech Deutschland GmbH, a subsidiary of Shunfeng Photovoltaic
International Ltd. (SF-PV).  The purchase price is EUR65 million. As part
of a transferred reorganization scheme, the transaction will enable the
operative business of the S.A.G. Solarstrom Group, together with all its
business areas, to be continued and the further European activities of
Shunfeng to be bundled. S.A.G.'s management, who together with the
insolvency administrator Dr. Jörg Nerlich, of Görg Legal Offices in
Cologne, predominantly drove the investor process, will remain in the new
company at management level. The investor process has been supported by
Roland Berger Strategy Consultants. The S.A.G. Solarstrom Group's creditors
can expect an above-average insolvency quota with the successful conclusion
of the investor process.

With the acquisition, the vertically integrated photovoltaic group Shunfeng
is strengthening its global downstream activities in the market for
renewable energies. "The S.A.G. Solarstrom Group is a perfect fit for our
downstream portfolio and will strengthen our European presence in the
photovoltaic market. The Group has very good access to markets and in
particular, many years of experience in the implementation of international
photovoltaic projects", says Eric Luo, CEO of SF Suntech. "The S.A.G.
subsidiary meteocontrol is also a world market leader in the professional
monitoring of photovoltaic systems and therefore not just a very
interesting extension to our own system portfolio. I am delighted that we
have gained a highly motivated and qualified management and staff team with
this acquisition, and that Dr. Karl Kuhlmann has agreed to lead the company
as CEO".

As a photovoltaic specialist, the S.A.G. Solarstrom Group has, in
particular, many years of expertise in the planning, construction and
operation of photovoltaic power plants, including monitoring and
maintenance. As part of the growth strategy, it is anticipated that new
jobs will be created and the future company location of Merzhausen will
function as the European headquarters. "It was our goal to find a strong
international partner to take over the Group with all its business areas,
with whom we would be able to continue to expand our offer along the entire
photovoltaic value-added chain and implement our plans for growth", says
Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. "And we have succeeded. For
the new company, we envisage substantial growth prospects, both in the
European and in the international market, and very much look forward to our
further collaboration".

New European headquarters in Merzhausen - management will remain on board

The new company, in which the other European activities of Shunfeng are
also to be bundled, will move to the planned office building in Merzhausen
in mid-2016, according to the current state of planning. S.A.G.'s 
management will remain in a managerial capacity in the new company.
Although the acquisition by SF Suntech might be subject to the approval of
the SF-PV shareholders, the release of securities and to merger clearance
checks, the insolvency administrator and the contractual partners are
anticipating that the transaction can be concluded within the next six to
eight weeks. "In 2015, we can start up once again with international plant
construction. New business was put on hold up to now due to the insolvency
proceedings", explains Kuhlmann.

Important milestones in the insolvency proceedings

In December 2013, S.A.G. Solarstrom AG filed for insolvency due to delayed
cash inflow in the amount of EUR20 million. With the transferred
reorganization scheme through the sale to SF Suntech, the insolvency
administrator Dr. Jörg Nerlich from Görg Legal Offices, Cologne, achieved
the most important milestone - the Group will be continued, the jobs will
remain secured and the Group's creditors, including the holders of the two
corporate bonds, are expected to receive an above-average quota of almost
50% on their receivables, whereby the quota might be considerably above or
below this value, depending on the actual result. "This is the result of
excellent cooperation with S.A.G.'s management, for which I would like to
express my sincere thanks", says Dr. Jörg Nerlich. "Projects have been
successfully concluded, strategic projects have been continued, the
expected return flows of funds have been made and, in particular, the
investor process has been very professionally supported at all times by
management and staff".
  
It is anticipated that the residual limited company will be withdrawn from
the stock exchange in the next few months and liquidated as part of the
ongoing insolvency proceedings. According to the current status, it is not
to be expected that shareholders will receive a return flow on their
invested capital. As the Group has been focusing mainly on the investor
process over the last few months, the 2013 annual financial statement will
be finalized and published in a few weeks, after the transaction has been
concluded.
  

About S.A.G. Solarstrom AG (under insolvency proceedings)
S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN:
DE0007021008) of Freiburg i.Br., Germany, is a manufacturer-independent
provider of photovoltaic plants configured to customers' individual needs.
The Group constructs plants of all sizes both in Germany and abroad. S.A.G.
Solarstrom AG also produces solar energy at its own plants.

S.A.G. Solarstrom AG's service portfolio covers the entire life cycle of
photovoltaic plants, including forecast and energy services, yield reports,
and remote service and maintenance, as well as insurance and financing. The
Group thus offers a comprehensive value chain in photovoltaics, from yield
reports, planning, construction, operations, and monitoring to
optimization, repowering, and deconstruction.

S.A.G. Solarstrom AG was founded in 1998.  Around 160 specialists work at
the four locations in Germany and the foreign subsidiaries.

S.A.G. Solarstrom AG is listed in the Prime Standard of the Frankfurt Stock
Exchange as well as according to the rules and standards M:access of the
Munich Stock Exchange.

Further information: www.solarstromag.com 


Contact:
S.A.G. Solarstrom AG (under insolvency proceedings)
Sasbacher Straße 5
79111 Freiburg
Germany
www.solarstromag.com 

Public Relations / Investor Relations 
Jutta Lorberg
phone: +49-(0)761-4770-311
e-mail: pr@solarstromag.com / ir@solarstromag.com 



---------------------------------------------------------------------

30.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language:    English                                              
Company:     S.A.G. Solarstrom AG                                 
             Sasbacher Str. 5                                     
             79111 Freiburg                                       
             Germany                                              
Phone:       + 49 761 4770 0                                      
Fax:         + 49 761 4770 555                                    
E-mail:      mail@solarstromag.com                                
Internet:    www.solarstromag.com                                 
ISIN:        DE0007021008, DE000A1E84A4, DE000A1K0K53,            
WKN:         702100, A1E84A, A1K0K5                               
Listed:      Regulierter Markt in Frankfurt (General Standard);   
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München  
             (m:access), Stuttgart                                
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
284863 30.08.2014