LDK Solar signs definitive agreement for polysilicon business

Investors have agreed to all subscribe to a collective US$240 million in series A redeemable convertible preferred shares of LDK Silicon & Chemical Technology.
 

LDK Solar, along with its polysilicon manufacturing subsidiary, has signed a definitive agreement with China Development Bank Capital Corporation, Excel Rise Holdings, Prosper East and an investment fund associated with another Chinese bank.

The signed definitive agreement has given the investors the right to veto specified matters, disclosure of specific information about the polysilicon division and certain registration rights.

The wholly owned subsidiary of LDK Solar, contained in the Cayman Islands, will hold and operate LDK Solar’s polysilicon division once all PRC government approvals for foreign investments have been completed.


“New energy revolution is a technology transformation marked by the wide applications of direct utilization of natural energy. A successful new energy company in the future must have the following characteristics: superiority in technology, economics of scale and the ability to lower costs. We believe LDK Solar is a company with such capabilities, and the $240-million investment in LDK Silicon led by CDBC will continue to strengthen LDK Solar's leading position in the solar industry," Zhang Xuguang, president of CDBC, said.

The investment will be finalized once specified closing conditions, such as governmental and corporate approvals from all parties, have been completed.