Taiping Financial Holdings Co. Ltd. agreed to invest in GCL New Energy Holdings Ltd.'s new shares and convertible bonds.
The two companies on Nov. 20 entered into a nonbinding agreement under which Taiping Financial Holdings or its affiliates will set up an investment fund of about HK$8 billion to invest in GCL New Energy Holdings' shares and convertible bonds. Taiping Financial Holdings or its affiliate companies will act as the manager of the fund.
Taiping Financial or its affiliates can subscribe for shares representing up to 30% of GCL New Energy Holdings' issued share capital.
The companies will finalize the agreement after completing due diligence.
The agreement is subject to the approval of GCL New Energy Holdings' shareholders and other necessary regulatory approvals.
GCL New Energy is an indirect unit of GCL-Poly Energy Holdings Ltd, which owns a 62.8% stake in the former.