LONDON (Alliance News) - Auhua Clean Energy PLC Monday said it will now pay for its acquisition of Taiwan Ziolar by issuing shares and will no longer also issue a loan note, after its shares rose significantly since it originally proposed the deal.
Under an initial heads of terms agreement signed last August, Ahua was going to buy the Taiwan-based thermal panel technology company by issuing 11.7 million shares at 22.5 pence each and a convertible loan note for the remaining USD0.5 million.
Monday, it said it will now pay by issuing 6.9 million shares at 40 pence each.
Auhua specializes in energy efficient water heating solutions, with a focus on the manufacture and sale of solar powered water heating systems. It says Taiwan Ziolar will bring state-of-the-art thermal panel technology to Auhua, a vital component in solar powered water heater systems.
"The proposed Taiwan Ziolar acquisition would add advanced coating technology that would enhance Auhua's system efficiency performance and reduce production costs, thereby helping to create a long-term competitive advantage for Auhua in the solar thermal water heater industry. Further, the innovative technology would enable the installation of smaller sized panels with good efficiencies, better utilised in high rise buildings," Auhua said in a statement.
Auhua shares were up 2.4% at 42.48 pence Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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