Jul 30, 2014 - Hong Kong-based Xinyi Solar Holdings Ltd (HKG:00968) today said it will get HKD 778.7 million (USD 100.5m/EUR 75m) in net proceeds from the sale of newly issued stock in a bid to support its solar projects.
Xinyi Solar is focused on the making of solar glass, but as part of a plan to expand into the downstream solar power generation segment it is working on four ground-mounted solar farm projects in China, totaling 450 MW. It is also developing a 250-MW solar project in Anhui and a 100-MW one in Fujian.
To boost the company's capita, parent Xinyi Glass Holdings (HKG:0868) will sell 380 million of existing Xinyi Solar stock under a placing agreement. Immediately after that it will buy 380 million of new shares in the subsidiary under a top-up subscription agreement. Via the two moves, it will reduce its stake in Xinyi Solar from 31.21% to 29.26%.
The placement is expected to conclude by August 1. In turn, the top-up subscription will proceed only after the placement has been finalised and after obtaining approval by the Hong Kong Stock Exchange.
Citigroup Global Markets Asia Ltd, will act as the underwriter and will place the 380 million existing Xinyi Solar shares at HKD 2.07 apiece to at least six subscribers. The amount represents 6.25% of the company’s outstanding share base after the issue.
(HKD 1 = USD 0.129/EUR 0.096)
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