(September 14, 2002) - China's leading solar power plant operator, Xinyi Energy Holding Co., Ltd
(Xinyi energy or the group; Stock Code: 03868) announced today that the group will sell at HK $2.50 per share
Sale of 357520000 allotment shares to China Life Insurance (Group) Company ("China Life") and Hillhouse capital advisors, Ltd. ("Hillhouse capital"). China International Finance Hong Kong Securities Limited ("CICC") is the exclusive placing agent for the placement.
According to the placement agreement between the group and CICC, China Life Insurance and Hillhouse capital will subscribe for 12502000 shares and 232500000 shares respectively, totaling 357520000 shares, accounting for about 5.29% of the group's existing issued share capital and about 5.03% of the group's issued share capital after expansion. The placing price was reduced by about 8% from the closing price of HK $2.72 per group share on September 11, 2000, the last trading day before the date of signing the placing agreement. The placing is expected to be completed no later than November 2, 2002. After deducting all related fees and expenses, the net proceeds will be about HK $893.2 million. The group plans to use the funds as general working capital.
Mr. Li Shengpu, chairman and executive director of Xinyi energy (copper Bauhinia Star), said: we are very pleased to introduce China Life Insurance and Hillhouse capital as shareholders of the group. Their investment proves that they are confident in the business strategy and prospects of the group. Xinyi energy believes that this placement will further expand the group's shareholder base and strengthen the group's financial situation, prepare for future business development, and bring sustained and stable returns to shareholders.