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.