GCL generates another $85 million with new shares and 100 MW project sale

Share

Debt-saddled Chinese polysilicon manufacturer and PV developer GCL-Poly secured a US$84.7 million windfall either side of the weekend, thanks to a shares issue and a 100 MW solar project sale.

The Suzhou GCL New Energy subsidiary of the company yesterday completed the sale of a 75% stake in a 100 MW solar project in China to a state-controlled entity after GCL-Poly Energy Holdings had placed 1.3 billion new shares on Friday.

The project stake sale to the CDB New Energy business, which is 35.4% controlled by a subsidiary of the Tianjin local government and 19.67% by a division of the China Development Bank, will generate net proceeds of RMB362 million (US$51.2 million), based on a sale price of RMB137 million plus almost RMB66 million in dividends as well as other monies owed to the selling company by the traded business.

CDB New Energy has the option of purchasing the 25% of the project business retained by Suzhou GCL New Energy further down the line. GCL, which has a crippling debt mountain, admitted it had booked a loss on the sale of the 100 MW facility.

GLC-Poly Energy Holdings on Friday raised HK$260 million (US$33.5 million) by issuing shares worth 6.15% of the enlarged business. That development came less than a month after a previous, near-identical fundraising had lapsed because one of the necessary conditions had not been fulfilled.

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.

Popular content

Solar panel price drop in November may mark end of downward trend
21 November 2024 Martin Schachinger, founder of pvXchange.com, says the 8% price drop in November for solar modules could mark the end of sustained declines, as market...