Xinyi Glass Plans to Spin Off Solar-Glass Unit in Hong Kong
Xinyi Glass will distribute 70 percent of its holdings in Xinyi Solar Holdings Ltd. to shareholders, and retain the remaining stake, it said in a statement to the Hong Kong stock exchange today.
The spinoff plan takes place amid a trade dispute between the U.S. and China over solar equipment, with both countries imposing duties on imports. In 2011, Xinyi postponed a plan to sell shares of its solar-glass business as global equity markets plunged because of the debt crisis in Europe.
“The separate listing will provide Xinyi Solar with a separate platform to raise future funds from the capital markets to support its growth through continuing organic expansion as well as acquisitions,” Xinyi Glass said in today’s statement.
Solar glass products accounted for 13.8 percent of the company’s sales in 2012, according to Xinyi Glass’s annual report.
Shares of Xinyi Glass fell as much as 4.8 percent after trading resumed following a suspension pending the statement. The stock traded hands 0.4 percent higher at HK$7.14 as of 1:50 p.m.
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