GCL-Poly Energy Holdings Limited (3800.HK), an
integrated green energy company in China, announced that it will acquire 100%
equity interest in Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd., one of China’s leading suppliers of polysilicon and wafers
for use in the solar industry, at a cost of HK$26.35 billion (US$3.4 billion).
Jiangsu Zhongneng
is the main operating entity of GCL Solar Energy Technology Holdings Inc. in the PRC.
The consideration represents a valuation of approximately 10.4 times the audited
consolidated net profit of RMB2,233 million of GCL Solar for the year ended December
31, 2008.
It will be satisfied by means of: 1) cash payment of US$200 million; 2)
issuance of a US$350 million secured note; and 3) issuance of 10,039,772,727 shares at
HK2.2 per share (representing a discount of 12% to the closing price of the last trading
day).
The acquisition is subject to the approval by independent shareholders and the grant of
whitewash waiver by the Securities and Futures Commission of Hong Kong.
Located in Xuzhou, Jiangsu province, GCL Solar’s annual polysilicon production
capacity is expected to reach 18,000 MT by the end of 2009. With further technical
upgrade, it will further expand to 21,000 MT by the end of 2010, making GCL Solar one
of the world’s largest polysilicon suppliers.
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