GCL-Poly Energy Holdings Ltd., a leading integrated renewable energy enterprise in the People’s Republic of China (PRC), has completed its 100% takeover of Jiangsu Zhongneng Polysilicon Technology Development Co., a deal PV-Tech reported earlier this month.
Jiangsu Zhongneng is the main operating entity of GCL Solar Energy Technology Holdings (GCL Solar) in the PRC. GCL Solar’s annual polysilicon production capacity is expected to reach 18,000MT by the end of 2009; with further technical upgrades, its capacity will further expand to 21,000MT by the end of 2010, making GCL Solar one of the world’s five largest polysilicon suppliers.
This completion means the shares of GCL Solar will be increased from 1,022,973,487 shares to 11,062,746,214 shares. The completion took place under the agreement of cash payment of $200 million; issuance of a $350 million secured note and issuance of 10,039,772,727 shares at HK2.2 per share.
The acquisition has obtained shareholders approval as well as the grant of whitewash waiver by the Securities and Futures Commission of Hong Kong. All conditions under the acquisition agreements have been fulfilled and accordingly the completion took place on July 31.
For the six months ended June 30, the sales revenue and the gross profit margin of Jiangsu Zhongneng were RMB1 112 million and 42.69%, respectively.