Good Energies to boost stake in Solarfun

Shanghai, China-based Solarfun Power Holdings (Nasdaq: SOLF) said today that renewable energy investor Good Energies would raise its stake in the company to 34.7 percent, up from 6.3 percent.

Good Energies, backed by Switzerland's COFRA Group, signed an agreement to purchase 66.7 million Solarfun ordinary shares and 281,011 American Depository Shares, including 50 percent of the shares held by Solarfun chairman and CEO Yonghua Lu.

"I am committed to the long-term success of the company and pleased to have Good Energies as a strategic investor at this stage of our company's growth," said Lu, who will retain a 16.1 percent stake in Solarfun.

Good Energies first invested in Solarfun, a manufacturer of silicon ingots and photovoltaic cells and modules, in 2006.

"We view Solarfun as one of the best manufacturing platforms for PV products in Asia and we believe there are tremendous opportunities for growth," said Richard Kauffman, CEO of Good Energies.

In connection with the investment, Good Energies will get a second spot on the board at Solarfun.

Solarfun said the transaction, which is subject to regulatory and customary closing conditions, is expected to be complete by the first quarter of 2008.