Xinyi Glass to float up to 30% of solar glass unit
Oct 21, 2011 - Hong Kong-based float-glass products maker Xinyi Glass Holdings (HKG:0868) said Friday it would sell 25-30% of its solar glass unit Xinyi Solar as part of a planned spin-off and listing of the subsidiary on the Hong Kong Stock Exchange.
The company plans to use 45% of the proceeds to finance the construction of ultra-clear photovoltaic (PV) raw glass production lines, ultra-clear PV processed glass processing lines and an ultra-clear float glass production line.
Following Xinyi Solar's listing, Xinyi Glass will hold 70% to 75% in it and will continue to consolidate the unit's financial statements. The company plans to provide an over-allotment option that could further lower its stake in the subsidiary to between 65.5% and 71.25%, it said.
In the first half of 2011, Xinyi Glass's revenue stood at HKD 3.88 billion (USD 499m/EUR 359m), of which HKD 654 million came from Xinyi Solar. The unit accounted for more than a quarter of the group's HKD-842-million net profit for the period.