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Bloomberg
China’s GCL-Poly Energy Holdings Ltd. sank to the lowest level in more than nine years as a deal for the company to sell a controlling stake in its polysilicon unit worth $1.9 billion to Shanghai Electric Group Co. fell apart.
Shares of GCL-Poly in Hong Kong fell 7.6 percent to close at HK$0.61, the lowest since March 2009, paring an earlier loss of as much as 9.1 percent. Dollar bonds of subsidiary GCL New Energy Holdings Ltd. also came under pressure, with the 2021 notes falling 2.9 cents on the dollar to 86.5 cents, the steepest drop in two months, according to Bloomberg-compiled prices.
GCL-Poly and Shanghai Electric said that the size and complexity of the transaction made it difficult for them to reach a full agreement on terms in a short time frame. They also said the timing and conditions were not favourable for the deal. The proposed sale came on the heels of China’s decision to halt some solar plant approvals this year and curb subsidies, triggering concerns of a global slowdown in the solar power industry.