ReneSola Ltd.'s shareholder Shah Capital Management Inc. has tentatively agreed to purchase newly issued shares in the Chinese solar panel manufacturer for $11 million.
Shah Capital Management holds a 10.08% stake in the company as of June 30, according to S&P Global Market Intelligence data. The company will issue 100 million ordinary shares at 11 cents apiece, according to a Sept. 16 release.
Renesola said the purchase price is equivalent to $1.10 per American depositary shares, representing an approximately 12% premium based on the average closing price in the last 30 trading days. The company's American depositary shares each represent 10 ordinary shares.
