Ningbo Boway Alloy Material Company Limited announced that its wholly-owned subsidiaries, BOVIET SOLAR CELL TECHNOLOGY (NORTH CAROLINA) LLC and BOVIET USA PROPERTY LLC, have entered into an agreement to sell their solar cell assets to INOX SOLAR AMERICAS, LLC. The total consideration for the cell assets equals a base purchase price plus final inventory and labor costs at closing, plus any performance payment amount, minus final closing liabilities. The base purchase price is $413 million, with a performance payment benchmark set at $57 million.
Previously, the company signed a transaction agreement with the same buyer to sell 100% of the equity in its wholly-owned subsidiary, Boviet Solar Technology (North Carolina) LLC, with the transaction value being the sum of up to $254 million plus the cash balance at closing. Consequently, the total consideration from the sale of the 100% equity stake in Boviet Solar Technology (North Carolina) LLC and the cell assets is expected to be approximately $724 million, based on the sum of the base purchase price and the performance payment.
It is noted that the U.S. Inflation Reduction Act is set to take full effect starting July 2025. The Act introduces clear and stricter regulations regarding investments, mergers and acquisitions, and related industry participation in the United States by Foreign Entities of Concern, including compliance restrictions and regulatory requirements for investment entities from countries designated as FEOCs, such as China. According to the Act's provisions, the company will be ineligible for federal industry-specific policies starting January 1, 2026. Upon completion of these transactions, the company will recover its investment costs and realize a certain premium return.
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