Hong Kong-listed Chinese power company GCL-Poly Energy Holdings yesterday announced that it will pay HK$26 billion $3.4 billion to acquire Jiangsu Zhongneng PV Technology Development, a supplier of polysilicon used in solar panels. The chairman of GCL-Poly, Zhu Gongshan, is also the owner of Zhongneng and by absorbing the target into the listed company, Zhu and his associates will become GCL-Poly's majority shareholder.
Most of the deal will be funded by GCL-Poly issuing approximately 10 billion new shares to the sellers at a price of HK$2.20 each, or a total of $2.8 billion. The price represents a 12% discount to the company's share price before trading was suspended...
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