SunPower Buys AUO's Stake In Malaysian JV

(RTTNews) - SunPower Corp. announced that it will purchase AUO's portion of the two companies' joint venture which manufactures solar cells at an 800 megawatt (MW) fabrication facility in Melaka, Malaysia.

As per the stock purchase agreement, SunPower will pay AUO $170 million over the next four years. SunPower has also signed a supply agreement with AUO for 100 MW of SunPower's E-series solar panels. AUO also will remain a wafer supplier to SunPower. The transaction resolves a dispute between the two companies.

SunPower plans to eventually upgrade the Melaka facility, which has been recognized by the International Energy Agency for its superior energy-efficient design and Leadership in Energy and Environmental Design (LEED) acknowledgement. The facility includes infrastructure built to allow for significant future capacity growth.

Contingent on various conditions, the transaction is expected to close by the end of the month.