GCL-Poly Energy Holdings has announced its plans to enter into a joint venture and share subscription agreement with the Chinese wealth fund China Investment Corporation (CIC). The share subscription agreement is expected to raise around HK$5.5 billion, giving CIC a 20% share in GCL. The joint venture company will be set up in early 2010 to invest in and develop PV projects overseas.
The terms of the subscription agreement will see CIC subscribe for approximately 3,108 million new ordinary shares at the subscription price of HK$1.79 per share and will be subject to closing conditions such as the approval of GCL-Poly’s shareholders, among others. As a result of this transaction, CIC will be entitled to appoint two representatives to the new company’s board.
GCL-Poly and CIC’s joint venture company will be funded by investment of a nominal sum on the part of both companies, with scope for a further capital contribution of a total combined amount of US$500 million.