GCL-Poly sells $710 mln shares to China Investment Corp

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2009-11-09    

HONG KONG, Nov 19 (Reuters) - Power plant operator GCL-Poly Energy (3800.HK) said it would sell HK$5.5 billion ($710 million) shares to China Investment Corp (CIC), raising capital to fund a photovoltaic and solar energy development joint venture to be set up with the state-owned investment institution.


GCL said it planned to issue 3.1 billion new shares, or 20 percent of its enlarged share capital, to CIC at HK$1.79 each. The issue price represented a 22.5 percent discount to the previous closing price of HK$2.31 on Nov 13. Trading in the shares will resume on Thursday.


Proceeds will also be used for working capital and repayment of borrowing.


Shareholding of GCL-Poly's major shareholder Zhu Gong Shan will be diluted to 39.82 percent on completion of the deal from 49.83 percent, while CIC's stake in the company will be increased to 20.16 percent from 0.09 percent.


For statement please click here (US$1=HK$7.75) (Reporting by Donny Kwok; Editing by Ken Wills)