Friday, June 6, 2008

China Tianwei plans rights issue for solar projects

SHANGHAI, June 4 (Reuters) - China's Baoding Tianwei Baobian Electric Co Ltd said on Wednesday it plans to issue new stock to shareholders to raise funds for 3.2 billion yuan ($462 million) in solar energy projects and other business requirements.

The company plans to issue up to 210 million additional shares, or up to 1.8 shares for each 10 held, to fund a solar energy panel project, two polysilicon production lines, repayment of bonds and improvement of its cash position.
It added that if the rights issue does not raise enough funds to meet the 3.2 billion yuan requirement, it would secure the remainder from its own funds or bank loans.

It said the offer price for the shares would be determined based on net assets per-share in the most recent results report. The company reported net assets per share of 4.19 yuan in the result for the first quarter.

The company's shares ended at 39.34 yuan on Tuesday. They have risen about 10 percent this year, compared with a one-third drop in Shanghai's benchmark index .SSEC.

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