With indebted Chinese solar developer Panda Green preparing to dilute the investment of shareholders by holding a big shares subscription to pay down debt, the company did not have to look far for its new non-executive director.
In an announcement to the Hong Kong stock exchange last night, Panda Green said its new executive appointment is the 32-year-old daughter of one of its significant shareholders.
Xie Yi, an economics graduate of the U.K.’s Durham University, is the daughter of He Bing, who holds a 5.87% stake in the developer on the basis of the current issued stock. Although other shareholders face the prospect of a significant watering down of their investment if the planned subscription takes place, documents about the proposed arrangement published this week showed He is the ultimate owner of one of the five corporate investors due to take a slice of the company.
He is the owner, ultimately, of the British Virgin Islands-based Asia Pacific Energy and Infrastructure Investment Group Ltd investment holding company. Under the terms of the planned shares subscription, Asia Pacific will acquire 1,043,286,680 shares in an enlarged Panda Green for HK$0.3 ($0.038) per share – amounting to 6.49% of the enlarged company and ensuring He will end up with more of a holding.
Panda Green’s debt pile
Panda Green revealed a RMB20.8 billion ($3 billion) debt pile at the end of June, for a company gearing ratio of 73.1%. With a $123 million loan from Qingdao Investment falling due last month, the creditor will capitalize its loan into equity under the terms of the proposed shares subscription. Panda Green also faces the prospect of a further $127 million of its debt being due for repayment by May.
Xie’s appointment will add a drop more to its commitments, with He’s daughter taking up her position yesterday – initially for a year – for a HK$200,000 salary and with the potential to secure a discretionary bonus and access to the company’s share option scheme.
Elsewhere on the Hong Kong exchange, EPC company and solar applications provider Singyes Solar resumed trading in its shares.
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: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.