LDK Solar sells stake to China's Hen Rui Xin
SUNNYVALE, Calif. (AP) — Chinese solar equipment maker LDK Solar is selling a stake in the company of about 20 percent to Hen Rui Xin Energy, a state-run Chinese company, for around $23 million.
LDK Solar Co. said Monday that Hen Rui Xin is buying approximately 26.7 million shares at 86 cents apiece. That is a 21 percent premium to the company's Friday closing price of 71 cents.
Shares of LDK rose 11 cents, or 15.5 percent, to 82 cents in morning trading. The stock has traded between 71 cents and $6.92 over the past year.
LDK Solar, with U.S. headquarters in Sunnyvale, Calif., has about 133.5 million shares outstanding, according to FactSet.
Hen Rui Xin's majority owner is Hi-tech Wealth Investment and Developing Co., which makes investments in solar businesses. State-owned Asset Management Co. has a 40 percent stake.
As part of the agreement, Hen Rui Xin has the right to name three directors to LDK's board. The companies also agreed to add two independent directors to the board.