China Ming Yang Buying Component Supplier for $149 Million

(Bloomberg) — China Ming Yang Wind Power Group Ltd., a

Zhongshan-based turbine maker, agreed to buy one of its largest

suppliers for about 925 million yuan ($149 million).

Ming Yang will acquire 99 percent of China Smart Electric

Group Ltd. this week and expects to buy the remaining 1 percent

in the Cayman Islands-based holding company, according to a

statement Monday.

China Smart, through various subsidiaries, owns all of

RENergy, a supplier of electrical components for wind turbines

that sold 794 million yuan of equipment to China Ming Yang last

year, according to the statement.

“RENergy’s product line of wind turbine control and

monitoring systems fits perfectly with our existing offerings,”

Chief Executive Officer Chuanwei Zhang said in the statement.

The first part of the deal is expected to close this week,

and the purchase of the remaining 1 percent of China Smart will

be complete “in the near future.” Payment will be a

combination of 300 million yuan in cash over the next 12 months

and 28.9 million newly issued shares of Ming Yang valued at

$3.49 each.

China Ming Yang’s American depositary receipts, each worth

one ordinary share, gained 0.9 percent to $3.52 at the close in

New York.

To contact the reporter on this story:

Justin Doom in New York at

jdoom1@bloomberg.net

To contact the editors responsible for this story:

Reed Landberg at

landberg@bloomberg.net

Will Wade, Jim Efstathiou Jr.

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