GCL-Poly Energy sells wafer production facility
GCL-Poly Energy has entered into sale and purchase agreements under which it has agreed to sell its wafer production business in two tranches, for a total consideration of RMB8 billion in cash (equivalent to approximately HK$10.1 billion).
The first target companies will be sold to Jiangsu Golden Concord Energy Co., Ltd., a connected person of GCL-Poly for a total consideration of RMB2.1 billion in cash (equivalent to approximately HK$2.6 billion).
The second target companies will be sold to Shanghai Miaochang Investment Management Center (Limited Partnership) and Shanghai Zhongmin Yinfu Investment Management for a total consideration of RMB5.9 billion in cash (equivalent to approximately HK$7.4 billion).
Within three business days of the signing of the sale and purchase agreements on 29 November 2014, the First Tranche Purchaser and the Second Tranche Purchaser will pay two separate deposits in the amount of RMB100 million (equivalent to approximately HK$126.2 million) and RMB300 million (equivalent to approximately HK$378.6 million), respectively, totaling RMB400 million (equivalent to approximately HK$504.8 million).
GCL-Poly believes it is more prudent to focus on the upstream polysilicon business given the relatively higher barriers to entry to produce polysilicon on a large commercial scale. GCL-Poly will also be solidifying cost leadership and strengthen its competitiveness through continuous technology improvements through investments in the fluidized bed reactor (FBR)polysilicon production method. By the end of 2015, an increase of 25,000 tonnes of production capacity is expected for the fluidised bed reactor (FBR) polysilicon production.
