June 6 (Renewables Now) - GCL-Poly Energy Holdings Ltd (HKG:3800) today announced plans to sell a 51% stake in its indirect subsidiary Jiangsu Zhongneng Polysilicon Technology Development Co Ltd in the wake of solar policy changes announced by China on Friday.
The company will sell the interest to Shanghai Electric Group Co Ltd (SHA:601727). The price is yet to be determined but the overall valuation of Zhongneng Polysilicon is not expected to exceed CNY 25 billion (USD 3.9bn/EUR 3.3bn). Half of the price will be paid in cash and half in shares.
GCL-Poly Energy has decided it is important to find a strategic partner after the Chinese government recently unveiled measures aimed at, among other things, an accelerated reduction of subsidies in the solar sector.
The company believes that the potential creation of a strategic partnership with Shanghai Electric can support the growth and development of Jiangsu Zhongneng, according to the statement.
(CNY 1 = 0.157/EUR 0.133)