Shunfeng settles Wuxi dues

Hong Kong-listed Chinese solar panel maker Shunfeng Photovoltaic Technology Co Ltd said on Friday that its biggest shareholder Cheng Kin-ming, has paid the remaining 2.5 billion yuan ($412 million) needed to fully acquire the Chinese unit of Suntech.

Shunfeng had initially paid 500 million yuan to Wuxi Suntech, the main Chinese subsidiary of Suntech Power Holdings Co, once the world's largest solar panel maker, which has since been crushed by a demand glut after the global financial crisis.

Zhang Yi, chairman of Shunfeng, said the move would enhance the company's research and development capabilities and improve the quality of its solar products.

"After the shareholders clear the Wuxi Suntech deal, the company will pay back Cheng's money," he said.

Industry insiders, however, said that there are still a lot of uncertainties about the takeover as the liquidators of Suntech Power Holdings are yet to approve the acquisition.

"Technically speaking, the transaction is not complete, because the liquidators of Suntech Power Holdings are still investigating the sale for possible legal breaches," said Zhao Yuwen, an expert at solar panel industry.