LDK Solar Co. Ltd. and its wholly owned polysilicon manufacturing subsidiary have entered into a definitive agreement with China Development Bank Capital Corp. Ltd., a wholly owned subsidiary of China Development Bank Corp., Excel Rise Holdings Ltd. and Prosper East Ltd., investment funds affiliated with China Construction Bank Corp., and an investment fund affiliated with another major Chinese bank.
Under terms of the agreement, the investors agreed to subscribe to an aggregate amount of $240 million of Series A redeemable convertible preferred shares of LDK Silicon & Chemical Technology Co. Ltd., a wholly owned subsidiary of LDK Solar incorporated in the Cayman Islands. The subsidiary will hold and operate LDK Solar's polysilicon business.
As a part of restructuring of the LDK Solar polysilicon business for the above-mentioned investment, LDK Solar has recently completed the repurchase of the 15% ownership stake in its 15,000 metric-ton polysilicon plant from Jiangxi International Trust and Investment Co. Ltd.
SOURCE: LDK Solar