LDK Solar Company Limited, the world’s largest producer of multicrystalline solar wafers, sold $240 million worth of shares of their polysilicon subsidiary to a group of investors led by the China Development Bank Corporation.
LDK Solar sealed the deal on Monday with China Development Bank Capital Corporation Limited, a wholly-owned subsidiary of China Development Bank, Excel Rise Holdings Limited and Prosper East Limited and an investment fund affiliated with a major Chinese bank.
The shares represent about 18.46 percent of the aggregate shares issued and the outstanding share capital of LDK Silicon and Chemical Technology Company Limited, the subsidiary which will hold and operate the company’s polysilicon business once approved by various Chinese agencies.
The investors will have to waive some compensation clauses if the LDK polysilicon subsidiary pulls off a qualified initial public offering this year.
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Currently, the investment is subject to closing conditions, such as governmental and corporate approvals of each party.
LDK Solar recently repurchased 15 percent of its ownership stake in its 15,000-metric-ton polysilicon plant from the Jiangxi International Trust and Investment Company as part of its polysilicon business restructuring efforts.
In September, LDK Solar bagged 60 billion Chinese yuan ($8.9 billion) of credit facilities from China Development Bank, the country’s largest developmental financial institution.
The Chinese solar giant achieved 3 gigawatts of annual solar wafer production capacity by the end of December.
