GCL-Poly Energy To Sell 20% Stake To China Sovereign Fund

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2009-11-19    

HONG KONG (Dow Jones)--Sovereign fund China Investment Corp. has agreed to buy a 20% stake in GCL-Poly Energy Holdings Ltd. (3800.HK) in a deal valued at HK$5.56 billion, the Hong Kong-listed company said Wednesday.


China's US$300 billion sovereign-wealth fund plans to subscribe to 3.11 billion new GCL-Poly shares at HK$1.79 each, representing a discount of 23% to the stock's last traded price of HK$2.31 before it was suspended from trading on Monday.


GCL-Poly, a Chinese co-generation power plant operator, said it has also agreed to set up a joint venture company with CIC to develop solar energy projects.
CIC's planned investment in GCL-Poly is the latest in a number of energy and resource related deals for the sovereign-wealth fund as part of China's strategy to secure resources through minority stakes in foreign resources companies.


GCL-Poly, which listed in 2007, is a privately owned co-generation power plant operator in China's industrialized northeastern provinces of Jiangsu and Zhejiang. It owns stakes in more than a dozen power plants in China.
 
-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; jeffrey.ng@dowjones.com