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HONG KONG, Nov 19, 2009 - (ACN Newswire) - GCL-Poly Energy Holdings Limited ("GCL-Poly" or the "Company") today announced that the Company has entered into a binding framework agreement with China Investment Corporation ("CIC"), pursuant to which CIC will subscribe for an aggregate of 3,108 million new shares at the subscription price of HK$1.79 per share ("the Subscription"). The net proceeds from the Subscription are expected to amount to approximately HK$5.5 billion. Upon completion of the transaction, CIC will hold approximately 20% of the Company on a fully diluted basis.
In addition to the Subscription, GCL-Poly and CIC also intend to set up a joint venture company ("JV Company") to invest in and develop photovoltaic projects or other solar energy projects. The parties will subscribe nominal amounts of capital on the formation of the JV Company with further capital contribution of an initial total combined amount of US$500 million being subject to satisfactory due diligence by CIC on the investment opportunities.
The Company intends to use the net proceeds raised from the Subscription for general working capital, repayment of borrowings and exploration of new business opportunities, including investment in and development of the above-mentioned JV Company.
The Subscription will be subject to a number of conditions including the signing of definitive documentation between the Company and CIC and the approval of GCL-Poly's shareholders at an EGM. To the extent permitted by all applicable laws and regulations and the Company's articles of association, upon completion of the Subscription, CIC will have the right to nominate two representatives as new board members of the Company.
"This transaction marks an important step for GCL-Poly, with our industry expertise in the renewable and clean energy business and our newly gained financial flexibility," said Mr. Zhu Gong Shan, Executive Director, Chairman and CEO of GCL-Poly, "the deal will strengthen our financial position and enhance further the Company's leading role in the renewable energy industry."
Credit Suisse (Hong Kong) Limited is acting as financial advisor and Freshfields Bruckhaus Deringer is acting as international legal counsel to GCL-Poly in this transaction. Goldman Sachs (Asia) L.L.C. is acting as financial advisor and Richards Butler in association with Reed Smith LLP as international legal counsel to CIC in this transaction.
About CIC
CIC is an institutional investor. It is operated on a commercial basis, seeking long-term, risk-adjusted financial returns. For more information, please visit CIC's website at http://www.china-inv.cn.
Contact:
GCL-Poly Energy Holdings Limited:
Mr. Zhou Jiangbo
Tel: +852 3761 3120
Email: zhoujiangbo@gcl-power.com.hk
Ms. Stephanie Lau
Tel: +852 3761 3145
Email: stephanielau@gclsolarenergy.com
Topic: Investment
Source: GCL-Poly Energy
Sectors: Energy, Alternatives, Environment, ESG
http://www.acnnewswire.com
From the Asia Corporate News Network
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