China Technology Development Group ( Nasdaq: CTDC), an integrated clean energy corporation, announced Tuesday that the company will acquire a majority interest in China Technology Solar Power Holdings Limited. The stock purchase agreement states that China Technology Developemtn Group will obtain a 51 percent equity interest and become the major shareholder of CTSPHL Group.
The announcement sent shares skyrocketing more than 39 percent, to a high of $5.09 from Monday’s closing price of $3.66. More than 978,000 shares changed hands by 10:45 a.m. EDT Tuesday, 10 times greater than the stock's 50-day average daily volume of 97,000, according to Nasdaq.
Chairman and CEO of China Technology Development Group commented in a statement about the acquisition, "We are very pleased to become a controlling shareholder of CTSPHL Group. This marks a significant step that CTDC has made to enter into the solar power station arena and become one of the first overseas listed Chinese companies to hold an operating license from the Chinese government to operate on-grid solar power stations in China," commented by of the Company.
China Technology Development Group (CTDC) believes the acquisition will advance the company’s goals of becoming a fully-integrated solar company with the capacity and qualifications to design, build, and operate solar power plants.
CTSPHL Group, through its wholly-owned subsidiary, is developing a 100MW grid-connected solar power plant project located in Delingha City of Qaidam Basin in Qinghai Province, Northwestern China. Upon closing of the acquisition, the Company and CTSPHL Group will jointly develop the Delingha 100MW Solar Project. CTSPHL Group has obtained a 25-year operating license from the Qinghai Provincial Development and Reform Commission for the first phase of the Delingha 100MW Solar Project, consisting of 10MW. Construction commenced on the first phase on 28th September 2009 and is expected to be completed by the end of 2010.
China Technology Development is an up-and-coming integrated clean energy group focused on providing solar energy products and solutions. The Company has an 8.86 million-share float with only 257,000 shares short as of Sept. 25, according to Yahoo Finance. Only 3.2% of the company's shares are held by insiders with another 1.7% owned by institutions. CTDC’s major shareholders include China Merchants Group and Beijing Holdings Limited.