Goldpoly New Energy Holdings is celebrating the successful acquisition of approximately 92.17% of the entire issued share capital of China Merchants New Energy Holdings on 10 June.
In January, Goldpoly announced that the deal had been valued at HK$2.12 billion (US$273 million). However, as a result of the acquisition, the board has estimated that the group may record a significant loss for the six months ending 30 June 2013 as compared to the loss for the six months ended 30 June 2012 mainly due to a possible immediate impairment of goodwill of the acquisition.
When a company records a goodwill impairment, it is telling the market that the value of the acquired assets has fallen below what the company generally paid for them.
The terms of this acquisition includes new additions to its Goldpoly’s board of directors including Alan Li and Zhenwei Lu who have been appointed as executive directors, and Baiqian Yang and Maggie, Ping Qiu who have been appointed as non-executive directors. Furthermore, Shi Dinghuan has been appointed as an independent non-executive Director.