GCL New Energy completes USD-95m share sale

Oct 16, 2014 - Chinese firm GCL New Energy Holdings Ltd (HKG:0451) said today it had raised HKD 735 million (USD 95m/EUR 75m) in net proceeds from the sale of newly issued stock to support its solar projects.

The printed circuit boards maker, which is expanding into the downstream renewable energy field, explained that the move is in line with its strategy to build a solar power generation business. Since end-August, GCL New Energy has announced the acquisition of majority stakes in 411 MW of solar projects in China through three separate deals and has also agreed to develop 500 MW of fresh photovoltaic (PV) capacity.

To boost the company's capital, its majority owner Elite Time Global Ltd sold 291 million of existing GCL New Energy stock under a placing agreement and then it immediately bought the same number of new shares in the company under a top-up subscription agreement. Via the two moves, it reduced its stake in GCL New Energy from 67.99% to 62.28%.

The placement concluded on October 13. Three days later, and after obtaining approval by the Hong Kong Stock Exchange, the top-up subscription was also finalised.

Hong Kong-based solar company GCL-Poly Energy Holdings Ltd (HKG:3800) in February acquired a 67.99% stake in GCL New Energy. Elite Time Global is a unit of GCL-Poly.

(HKD 1.0 = USD 0.129/EUR 0.101)

Choose your newsletter by Renewables Now. Join for free!