CIC to spend HK$5.5b for 20% stake in GCL-Poly
By Li Xiang | China Daily | Updated: 2009-11-20 08:08
China Investment Corp (CIC), the nation's sovereign wealth fund, said yesterday it would spend HK$5.5 billion to buy a 20 percent stake in GCL-Poly Energy Holdings Ltd, the first time it has invested in a domestic renewable energy company.
CIC would subscribe to 3.1 billion new GCL-Poly shares at a price of HK$1.79 per share, a discount of 23 percent to the last traded price before the Hong Kong-listed energy company was suspended from trading on Monday.
GCL-Poly, the country's biggest producer of polysilicon, also agreed to set up a joint venture with CIC to invest and develop photovoltaic projects with an initial investment of $500 million. CIC will hold a 49 percent stake in the joint venture, with GCL-Poly holding the rest.
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