Beijing, China -- LDK Solar Co., a Chinese solar panel maker burdened with at least $3 billion in debt, agreed to sell a second 15 percent stake to Fulai Investments Ltd. for $25.8 million following their first share sale deal in January.
The company will issue 25 million new shares at $1.03 each to Fulai and offer its right to choose two non-executive directors for the board, Xinyu-based LDK Solar said today in a statement. This will boost LDK's total outstanding shares to about 169 million, according to data compiled by Bloomberg.
The transaction will be 28 percent less than the weighted average of $1.44 each that Fulai paid for the 17 million shares agreed to in the January deal. The solar-panel maker on April 19 reported its seventh straight quarter of losses, with a three- year low of $98.3 million in cash.
Fulai, incorporated in the British Virgin Islands, is owned by Chinese businessman Cheng Kin Ming. Cheng was a government researcher who has been involved in real estate development since 1993, according to a 2010 credit report from Huajie Rating on his company Shanghai Qianjiang Industry (Group) Co. Two calls to the company weren't answered.
LDK's American depositary receipts, each worth one ordinary share, rose 3.2 percent to $1.28 in New York trading yesterday. They have declined 11 percent this year.
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