LDK Solar Secures $31 Million in New Capital
LDK Solar Co., Ltd. (NYSE: LDK) has secured new capital from an investor group. The manufacturer of photovoltaic products has entered into a share purchase agreement with Fulai Investments Limited. Fulai has agreed to purchase 17,000,000 newly issued ordinary shares of LDK Solar, at a purchase price of $1.83 per share and this will bring in some $31.11 million into the company. The net proceeds will be used for general corporate purposes in LDK Solar’s operations and Fulai will own roughly 12% of the company after the deal.
Today’s pact is subject to the terms and conditions of the share purchase agreement, including a lock-up for 180 days from the closing date. The two groups are said to aim to meet the closing conditions to consummate the transactions prior to February 28, 2013. As part of the terms, Fulai has the right to designate two non-executive directors to the LDK Solar board of directors upon the closing of the transactions.
LDK shares are currently trading up 3% at $1.89 in New York against a 52-week trading range of $0.71 to $6.92 for the Chinese ADR.
This might not be quite as of a big deal that some solar investors have been considering but this is at least a sign that some investors are willing to invest in a sector that is not just down. Solar by and large remains down and out as far as new money from investors is concerned.