STR Holdings To Sell 51% Stake To China's Zhenfa Energy - Quick Facts

(RTTNews) - STR Holdings, Inc. (STRI) announced Tuesday a strategic relationship with Zhenfa Energy Group Co., Ltd., a leading developer of solar PV power stations based in Chongqing, China.

The transaction include the sale of shares of common stock representing a 51 percent interest in STR at $1.60 per share for an aggregate purchase price of approximately $21.7 million, the payment by the company of a special dividend in the aggregate amount of approximately $22.6 million to STR stockholders of record after the closing date, excluding Zhenfa. It also includes the execution of a Sales Service Agreement pursuant to which Zhenfa will, among other things, help drive sales of STR encapsulant to China-based solar module manufacturers.

STR said the contemplated transactions with Zhenfa are subject to approval by STR stockholders and satisfaction of other customary closing conditions. The Transaction is expected to close during the fourth quarter of this year.

The per share stock price offered for the 51% stake of STR's outstanding shares represents a 23 percent premium to the average closing stock price.

All stockholders other than Zhenfa will receive a special dividend of $0.85 per share, which will be substantially funded by Zhenfa's purchase of newly issued shares of STR. The shareholders will continue to own an economic interest in the company equivalent to 49 percent of their pre-Transaction ownership interest.