LDK Sinks to Year’s Low as Filings Show CEO Selling StakeBelinda Cao
LDK Solar Co., a Chinese photovoltaic maker with more than $3.1 billion in debt, fell to the lowest this year after Chief Executive Officer Xiaofeng Peng filed for a fifth time this month to sell shares in the company.
American depositary receipts of LDK Solar, based in Xinyu, China, tumbled 8.3 percent in their fourth day of declines to $1.54 in New York, the lowest close since Dec. 31. The ADRs have plunged 30 percent from a six-month high of $2.21 reached on Jan. 9. Trading volume on the ADRs was 1.5 times the daily average over the past three months, data compiled by Bloomberg show.
LDK New Energy Holding Ltd., LDK Solar’s controlling shareholder which is wholly owned by Peng, filed on Jan. 18 to the U.S. Securities and Exchange Commission to sell 394,000 ADRs, increasing its stake sale since Nov. 29 to 4.7 million ADRs, a document made public today showed. Total proceeds from the sales add up to $7.3 million, according to the document signed by Peng.
LDK Solar, the world’s biggest maker of wafers for solar cells after GCL-Poly Energy Holdings Ltd., agreed to issue and sell 17 million new shares to Fulai Investments Ltd. for $31 million, according to a Jan. 22 statement. The new shares, representing about 12 percent stake of LDK, would be sold for $1.83 each to Fulai, which is incorporated in the British Virgin Islands, the statement said.
The company hired Citigroup Inc. last month to help renegotiate its liabilities.