(Yicai) May 31 -- TCL Zhonghuan Renewable Energy Technology, the world's second largest supplier of photovoltaic monocrystalline silicon wafers, plans to invest USD197.5 million to acquire a controller stake in Singaporean solar module supplier Maxeon Solar Technologies to enhance its global competitive advantages.

TCL Zhonghuan is Maxeon Solar's largest shareholder with a 22.4 percent stake, which it will increase to at least 50.1 percent by taking part in the target company's debt restructuring, the Tianjin-based firm announced late yesterday.

After the transaction, TCL Zhonghuan will drive Maxeon Solar to improve its capital structure and operations and transform its business while fully leveraging its unique barrier advantages and technological innovation capabilities in the solar module market, the Chinese firm noted. This will create mutual promotion and synergy between TCL Zhonghuan's production and sales channels on a global scale, it added.

Maxeon Solar mainly designs, manufactures, and sells solar modules under Maxeon or SunPower brands, TCL Zhonghuan said. It holds strong intellectual properties, product branding, and sales channel advantages worldwide and has PV power station clients across several continents, it added.

Shares of TCL Zhonghuan [SHE: 002129] fell 2.5 percent to CNY11.19 (USD1.55) apiece as of lunch break in Shenzhen today. Maxeon Solar's stock [NASDAQ: MAXN] plunged 35 percent to USD2.03 in New York yesterday.

Editor: Martin Kadiev