Hanergy's Chairman to Sell 6 Percent Stake as Probe Continues

  • Li Hejun to sell 2.5 billion shares to buyers it didn't name
  • Shares in the solar gear-maker have been suspended since May

Hanergy Thin Film Power Group Ltd.’s chairman has agreed to sell a 6 percent stake in the company, as the solar equipment maker whose shares have been suspended since May grapples with a regulatory investigation and internal overhaul.

Li Hejun will sell a total of 2.5 billion shares to unidentified buyers, cutting his stake to 74.75 percent, according to two disclosure filings with the Hong Kong stock exchange. The shares are to be sold at an average of 0.18 yuan each ($0.03) according to the disclosure tables, though the stock is listed in Hong Kong dollars.

That appeared to be a steep discount to its last traded price. Hanergy’s shares tumbled by almost half on May 20, wiping out $19 billion of its market value and prompting a trading halt. The stock was suspended at HK$3.91 amid a Hong Kong regulatory probe.

A Barrage

Two calls to the public relations department of parent Hanergy Holding Group went unanswered.

Hanergy’s May collapse brought an end to a sixfold surge in the space of a year for the manufacturer, which for a time was the most valuable renewable energy company in the world.

The company has faced a series of challenges since the share plunge and the regulatory investigation. In November, Ikea Group said it wouldn’t renew a contract to fit homes with solar panels.

A unit of the listed company also faces a lawsuit over HK$1.73 million ($223,000) in unpaid office rent and management fees. Hanergy Thin Film Power Asia Pacific Ltd., which is responsible for the company’s business in the region, is the target of a writ filed Dec. 3 at the High Court of Hong Kong.