The Guggenheim Solar Exchange Traded Fund (ETF) has sold its shares in Hanergy Thin Film Power (TFP) despite the stock not currently being publicly traded.
Details on prices and buyers have not been revealed.
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Shares in Hanergy TFP surged in the first quarter of the year after a number of deals with other parts of the Hanergy Group were announced. The company’s value reached a high that made its chief Li Hejun China’s wealthiest person. A subsequent collapse in share price has been followed by the cancellation of a 900MW order for thin-film production equipment, the suspension of share trading, an investigation by the Hong Kong Securities and Futures Commission and now the divestment by an influential investor.
A Guggenheim spokesman told Investor's Business Daily that the fund was pleased to have found buyers for all its shares adding the sale was in the best interests of its investors.
An August 2014 annual report lists Hanergy Solar Power (the former name of Hanergy TFP) as one of Guggenheim Solar ETF's five largest holdings worth 5.4% of its US$429 million net assets, or around US$23.2 million as of August 2014 when the share price was around HK$1.2. At the peak price of just under HK$8 they would have been worth more than US$120 million.
A report in May claimed that 11.8% of the fund’s resources were invested in Hanergy.
A the time of writing, the Guggenheim Solar ETF lists its top five investments as SunEdison, First Solar, SolarCity, GCL-Poly and Terraform Power.