GCL-Poly has struck a deal to acquire a majority stake Same Time Holdings, with the terms of the agreement significantly sweeter for GCL-Poly than when the deal was first mooted last autumn.
the world’s largest maker of polysilicon and wafers for the PV industry, will
pay HK$1.44bn ($186m) for a 68% stake in Same Time, whose core business at the
moment is making printed circuit boards.
compares to the original deal the two companies were contemplating, which
involved GCL-Poly paying HK$1.8bn for a 29% stake in Same Time.
has explained the deal by stating that it wants a separate, publicly-listed
“platform” to use to buy and operate primarily PV plants, adding that it will
leave its businesses “more focused and organised”
has an immense pipeline of PV projects in China, and is increasingly pushing
offer, equivalent to HK$4.00 per share, comes in significantly below Same
Time’s actual share price, which floated above HK$6.00 per share even before
the takeover bid was revealed last year, and has since soared – starting this
week at HK$12.40.
But in a
joint filing with the Hong Kong stock exchange, the two companies note that
Same Time’s “business mix, business network, growth prospects, capital
structure, financing capability, branding and business profile of [Same Time]
will be significantly enhanced” as part of GCL-Poly’s energy empire.
deal is complete, Same Time’s existing board is expected to be cleared out and
replaced by GCL-Poly’s preferred candidates.
companies note that Same Time’s existing business model is under threat due to
the rising wages and mobility of China’s workforce, leaving it to seek “other
suitable business opportunities”.