Jan 19, 2013 - Goldpoly New Energy Holdings Ltd. agreed to buy a Chinese power plant developer partly owned by GCL-Poly Energy Holdings Ltd. to create an outlet for its products.
Goldpoly already owns 7.83 percent of China Merchants New Energy Holdings Ltd. and will pay HK$2.12 billion ($273 million) in stock and convertible bonds for the rest, according to a filing with the Hong Kong stock exchange yesterday. Ease Soar, a GCL-Poly unit that currently owns 17.4 percent of China Merchants, will own 13 percent of Goldpoly when the deal is complete, becoming its second-largest owner.
Goldpoly is "concerned" about falling panel prices and "has been looking for opportunities to expand its business downstream," according to the filing. The acquisition "will increase the internal consumption of the solar cells produced."
China Merchants has units that assemble solar panels and develop photovoltaic projects, and expects to build or acquire about 2.2 gigawatts of solar farms through 2015.
