GCL-Poly Buying Stakes in Same Time for HK$1.44 BillionJustin Doom
GCL-Poly Energy Holdings Ltd., the world’s biggest maker of polysilicon, plans to buy a 68 percent stake in Hong Kong-listed Same Time Holdings Ltd. for HK$1.44 billion ($186 million).
GCL-Poly will buy 360 million new Same Time shares at HK$4 each, and will seek a waiver from the rule requiring it to make a buyout offer, according to a joint filing yesterday by the two companies to the Hong Kong stock exchange.
Same Time plans to shift its focus to renewable-energy projects including solar plants, according to the statement. GCL-Poly owns existing and planned photovoltaic power stations in the U.S., South Africa and China with combined capacity of more than 2 gigawatts, according to its website.
“The deal will be a good beginning for GCL-Poly’s future solar power business after it becomes a controlling shareholder in Same Time,” which can provide an additional financing channel, Yin Lei, a Shenzhen-based analyst at China Merchants Securities Co., said by phone.
GCL-Poly’s stock jumped as much as 4.6 percent to HK$2.74, its highest since Jan. 23, before trading 1.2 percent higher at HK$2.65 yuan at 10:35 a.m. local time. Same Time slumped 5.9 percent to HK$12.70 after declining as much as 11 percent, the biggest decrease since Jan. 21.
The directors of Hong Kong-based Same Time plan to resign when the deal is completed and GCL-Poly will nominate new board members, according to yesterday’s filing. Same Time is now a maker of printed circuit boards and consumer electronics.
GCL-Poly, based in Hong Kong, said in October that it was considering an investment of HK$1.8 billion in Same Time.