Debt-ridden LDK sells off another 12% stake

It is understood Fulai is owned by a Hong Kong investment business.

The latest sale of stock follows LDK‘s disposal of its heavily loss-making LDK Anhui subsidiary to Shanghai Qianjiang Group for RMB25m ($4m) on January 4. At that point, LDK Anhui had negative net assets of $54m and bank borrowings of $485m.

The latest share sale further muddies the waters in terms of who owns LDK Solar after the Heng Rui Xin Energy Company – an investment vehicle itself 40% owned by the Chinese state investment vehicle Asset Management Company – paid $21.7m for a 19.9% stake in LDK in October 2012.

The latest share sale values LDK Solar at around $259m with the panel, wafer and cell manufacturer and solar plant developer rumored to be sitting on a $3.1bn debt mountain.

Elsewhere in the Chinese solar market, China Gogreen Assets Investment Ltd has announced an intention to rename its English business Jun Yang Solar Power Investments Ltd.