LDK Solar(NYSE:LDK) losing sheen- more power to Fulai
Northern, WI 03/27/2013 (gdpinsider) – LDK Solar Co., Ltd (NYSE:LDK) (Current: $1.13, Down by 3.50%) the solar products-maker had struck a sale agreement in January to sell 12 percent of its stake to the investment firm Fulai Investments Ltd. The share value at that point of time had been pegged at $1.83 per share and 17 million shares had been sold for a total of $31.1 million. LDK has now sold the remainder of 12 million newly issued shares at a price of $1.28 per share to Fulai. This takes the total value of the sale to around $15.4 million. The company shares had been going downhill since February.
Fulai will retain the right to nominate two non-executive directors to the LDK Solar Co., Ltd (NYSE:LDK) board and the new proceeds of the sale will be channelized towards general corporate purposes. There has been a lull in the sales of solar products and all solar companies have been feeling the heat. The drop in prices of these products has added fuel to the solar fire. The company has not posted any annual profits since 2012. LDK Solar Co and analysts have noted that its revenue in 2012 was less than 50% than what it stood at, in 2011. LDK Solar Co., Ltd (NYSE:LDK) manufactures solar wafers, modules, cells, polysilicon, It is also involved in solar farm projects