Solar manufacturers Jinko Energy and JA Solar Technology are each set to acquire a stake in the Xinte Energy unit which is planning to have a 100,000-ton-annual-capacity polysilicon fab up and running within two years.
The Chinese manufacturers will each hand over RMB315 million (US$48.8 million) for a 9% stake in the Inner Mongolia Xinte unit of TBEA-owned poly manufacturer Xinte Energy. With the parent company injecting a further RMB2.81 billion (US$435 million), the subsidiary's registered capital will rise from RMB60 million (US$9.29 million) to RMB3.5 billion (US$542 million), provided Xinte Energy shareholders approve the plan.
An update issued by Xinte to the Hong Kong Stock Exchange on Friday revealed the manufacturing facility will, in return for the investment, “prioritize the supply of polysilicon to the investors,” with a poly supply deal due to be drawn up by July 18.
Under the planned investment, Jinko and JA Solar will have the right to demand Xinte repurchase their 9% stakes if the manufacturing plant produces less than 50,000 tons of polysilicon per year in successive years. Xinte said such a development would cost it no more than RMB857 million (US$133 million).
Xinte said details of when and where the shareholder vote on the proposed tie-up will take place will be published by August 6.
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.