Hanergy Thin Film asks for more details about plan to take it private

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Given Hanergy Mobile Holding Group's poor track record on delivering cell and module orders to itself, it's perhaps understandable that the manufacturer's Hong Kong-listed Hanergy Thin Film division has requested more information about its parent's plans to take it private.

The parent company recently announced a HK$54.9 billion (US$7 billion) plan to purchase the shares in the thin film division not already owned by itself and its “concert parties”, in order to then relist the unit on China's A-share index – a move that would carry less exposure to Western eyes, not least since the Hong Kong exchange has banned trading in the thin film business' shares since May 2015.

That move was prompted by the discovery Hanergy Group had been inflating its value and performance with huge deals between its own businesses, a revelation that prompted a calamitous 47%, 24-minute slide in Hanergy Thin Film's value.

Hanergy Mobile Holdings, which according to a stock market update last night holds a 47.76% stake in its thin film division, is offering a HK$5 per share cash and “stock replacement” bid to take the troublesome unit back in house.

In yesterday's update, Hanergy Thin Film announced it has requested details of where the cash component of the parent company's offer will come from, and for more details about the stock involved in the stock replacement aspect of the offer, which values the target business at HK$210.7 billion.

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