China's Goldwind plans USD-59.2m share issue

Sep 3, 2014 - Chinese wind turbine maker Xinjiang Goldwind Science & Technology (HKG:2208) said Tuesday it plans to raise some CNY 363.3 million (USD 59.2m/EUR 45m) in gross proceeds from a proposed issue of new A shares.

The company explained that the planned placement will provide it with capital needed for its future business development and, at the same time, increase its solvency ratio and broaden its shareholder base. This, in turn, will further enhance the firm’s competitiveness in the wind energy market. The proceeds from the transaction will be used to supplement the firm's working capital, it noted.

The company has entered into separate subscription agreements for eight of its directors or senior management members to each buy no more than 550,000 new shares. Goldwind also signed two other subscription agreements, both with Shanghai Haitong Securities Asset Management Co Ltd, for 17.1 million and 19.6 million new shares, accordingly.

In total, Goldwind will offer about 40.95 million new shares, which will represent approximately 1.50% of the company’s total shares outstanding pursuant to the issue. It will sell them on the Shenzhen Stock exchange at CNY 8.87 apiece.

The transactions are pending approval from the company’s shareholders and the China Securities Regulatory Commission. Completion of the placement is expected within six months after all conditions precedent are met.

Currently, China Three Gorges New Energy Corp and its holding company China Three Gorges Corp each have a 24.67% stake in Goldwind. Following the transaction, their stakes will fall to 24.3% each.

(CNY 1.0 = USD 0.163/EUR 0.124)

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