GCL Poly, GCL New Energy unveil USD 775m of cash calls

Hong Kong-based solar firms GCL-Poly Energy Holdings Ltd (HKG:3800) and its unit GCL New Energy Holdings Ltd (HKG:0451) plan to raise a combined HKD 6.01 billion (USD 775m/EUR 710m) in open stock offers to their shareholders.

GCL Poly makes silicon wafers and polysilicon for the photovoltaic (PV) industry and operates solar power plants. Subsidiary GCL New Energy started as a printed circuit boards maker and is now involved in the downstream renewable energy field with a focus on solar power.

In a joint statement on Tuesday, the companies explained that with this move they plan to secure funding for their future projects, to reduce their indebtedness and for general working capital. GCL-Poly also intends to use part of the sum it obtains to pay the subscription price for the 3.24 billion GCL New Energy rights shares it is entitled to.

GCL-Poly’s plans envisage raising as much as HKD 3.5 billion in gross proceeds by selling between 3.1 billion and 3.13 billion shares at HKD 1.12 apiece. Under the terms of the rights issue, its shareholders will be able to acquire one new share for every five they currently have.

In turn, GCL New Energy will offer 5.2 billion-5.6 billion shares at HKD 0.45 per share, expecting to pocket up to HKD 2.51 billion before expenses. The firm will allot three rights shares for every eight shares held by each of its qualifying shareholders.

(HKD 1.0 = USD 0.129/EUR 0.118)

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