Juli Sling, a company engaged in the manufacture, design and sale of various rigging and lifting products, plans to fully acquire Juli New Energy through a private placement of 61 million shares at not less than 19.75 yuan a share, reports National Business Daily, citing a company filing.

The total consideration for the transaction is 1.2 billion yuan.

Juli New Energy is a subsidiary of Juli Sling’s parent, Juli Group. It has a registered capital of 616 million yuan and will become a wholly-owned subsidiary of Juli Sling after the completion of the transaction.

Juli New Energy specializes in the research and development, production and sale of crystal silicon solar battery chips and components. In addition, it is involved in the investment, construction and operation of solar power plants.

Juli New Energy had total assets of 2.68 billion yuan through the end of March, with a debt-asset ratio of 75.57 percent, which will be reduced to 64.52 percent upon the completion of the transaction.

Juli New Energy recorded first quarter 2011 revenue of 284 million yuan and net profit of 12.2 million yuan.

Its total production capacity of battery chips will hit 300MW by the end of the year, while that of battery components will increased to 400MW.