LDK Solar Signs Share Purchase Agreement with Fulai Investment
XINYU CITY, China and SUNNYVALE, Calif., Jan. 22, 2013 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today announced that it has entered into a share purchase agreement dated January 21, 2013 with Fulai Investments Limited, which has agreed to purchase 17,000,000 newly issued ordinary shares of LDK Solar, at a purchase price of US$1.83 per share with an aggregate purchase price of US$31,110,000, subject to the terms and conditions of the share purchase agreement, including a lock-up for 180 days from the closing date of the contemplated transactions.
Pursuant to the share purchase agreement, the parties will endeavor to fulfill the closing conditions to consummate the transactions prior to February 28, 2013. Fulai Investments also has the right to designate two non-executive directors to the LDK Solar board upon consummation of the transactions. The net proceeds will be used for general corporate purposes in LDK Solar's operations.
Mike's point is well taken. I'd add that, prior to the October 2012 PIPE, U.S. ADR holders arguably owned nearly 46% of the company. Following the placement with Heng Rui Xin, that ownership fell to a bit more than 36%.
We obviously need to wait for the final tally to be certain, but the preliminary indication is that U.S. ADR holders' ownership will be reduced to around 32% as a consequence of the placement with Fulai Investments.
At the end of 2011 according to the 20F they had appx 133M shares outstanding. I believe this is a fully diluted including the convertibles. It is possible that the bonds being so far under water are no longer convertible and they bought some back. The 36/46% you are suggesting put the base shares around 121M not counting cdb's. After the 2 offerings the shares outstanding should be around 157M + CDB's.