April 7 (Bloomberg) -- Same Time Holdings Ltd., a maker of circuit boards, may buy stakes in three Chinese power plants from GCL-Poly Energy Holdings Ltd. Chairman Zhu Gongshan and his family for at least HK$5 billion ($644 million).
Same Time agreed to a non-binding memorandum of understanding on April 2 to buy the assets for cash and stock, the company said in a statement today filed with the Hong Kong exchange. GCL-Poly said in a separate statement that Zhu and his family are beneficiaries of a trust that owns the power-plant interests.
GCL-Poly, the biggest maker of wafers for solar cells, said it has an option and right of first refusal on the transaction and it’s not certain yet whether the company will exercise those rights. Same Time said the deal may constitute a reverse takeover and change in control.
The stakes include the Taicang Harbour Power Plant, the Lanxi Power Plant and the Guohua Taicang Power Plant, according to the GCL-Poly statement.
The size of the deal is subject to a valuation of the target companies by an independent assessor, Same Time said. The purchase is also dependent on the signing of a formal agreement and GCL-Poly confirming that it won’t exercise its option to buy the companies.
Trading of shares in Same Time has been suspended since April 2, pending the announcement of the deal. Same Time has applied for shares to resume trading tomorrow, according to its statement.
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