GCL-Poly to Buy $232 Million of Same Time Shares, ConvertiblesJoshua Fellman
GCL-Poly Energy Holdings Ltd., the world’s biggest maker of polysilicon, is considering investing HK$1.8 billion ($232 million) in Same Time Holdings Ltd., which may add solar-power investment to making printed circuit boards.
GCL-Poly may buy new Same Time shares at HK$4 each, acquiring about a 29 percent stake in the Hong Kong-based company, according to a pair of filings with the city’s stock exchange yesterday evening. The companies didn’t say how many shares GCL-Poly may acquire under a non-binding memorandum of understanding.
The polysilicon maker, also based in Hong Kong, will invest the difference between the share purchase amount and the HK$1.8 billion total investment in zero-coupon five-year convertible bonds issued by Same Time, the companies said.
GCL-Poly said acquiring a stake in Same Time will provide a separate, listed company to develop solar-power projects, making its business “more focused.” For Same Time, which has been unprofitable in three of the past four years, the deal would give it an entry into the renewable-energy industry, according to the company’s filing.
The HK$4-a-share price represents a 47 percent discount from Same Day’s closing price yesterday. There’s no penalty for failing to complete the deal.
The deal replaces a proposal first disclosed in April for Same Time to buy stakes in three Chinese power plants from GCL-Poly Chairman Zhu Gongshan and his family for at least HK$5 billion. The parties won’t proceed with that transaction, Same Time said.
Same Time gained 0.3 percent to HK$7.56 at the close in Hong Kong yesterday, before releasing the statement. GCL-Poly dropped 2.9 percent to HK$2.31.