On January 21, LDK Solar and Fulai Investments signed an agreement under which Fulai Investments would acquire 17 million newly issued ordinary shares of LDK Solar, or a 12% stake in the photovoltaic manufacturer. The aggregate purchase price totaled $31.11 million.
As a first step, it was announced yesterday that Fulai Investments has acquired 5 million shares at $1.83 per share, or S$9.15 million. The remaining 12 million shares will be purchased by this March 28, subject to the fulfillment of closing conditions.
Once the transaction has been completed, Fulai Investments will own a 12% stake in LDK Solar. It will also have the right to designate two non-executive directors to the LDK Solar board. "The net proceeds will be used for general corporate purposes in LDK Solar's operations," said the photovoltaic company in a statement released.
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.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.