CTF said to buy $40m of Goldwind HK shares
Updated: 2010-06-05 06:47
(HK Edition)
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Chow Tai Fook Nominee Ltd, controlled by the family of Hong Kong tycoon Cheng Yu-tung, will buy $40 million in shares of a stock offering of Xinjiang Goldwind Science & Technology Co, said two people with direct knowledge of the transaction.
Chow Tai Fook has committed not to sell the shares for six months, the people said, declining to be identified because the agreement is confidential.
Xinjiang Goldwind, China's largest traded wind-turbine maker, may raise as much as HK$9.09 billion ($1.2 billion) in a public share sale in Hong Kong, two people with knowledge of the matter said on May 31. Goldwind is offering 395.3 million new shares at HK$19.80 to HK$23 each, said the people, who declined to be identified before an official announcement.
A staff member at Cheng's office in Hong Kong, who wouldn't give his name, declined to comment and told Bloomberg News to contact the company by post. Thomas Yao, a spokesman for Goldwind, said he has no knowledge of the matter.
Xinjiang Goldwind, which is already listed on the Shenzhen Stock Exchange, will likely increase consolidated profit by at least 26 percent to 2.2 billion yuan ($322 million) this year, according to a draft sale prospectus seen by Bloomberg.
China International Capital Corp, Citigroup Inc and Credit Suisse Group AG are managing the sale.
Xinjiang Goldwind will spend about 40 percent of the sale proceeds on building production bases, 24 percent to expand overseas, 15 percent for design and development, 11 percent to pay loans and 10 percent as working capital, one of the people with knowledge of the matter said in May.
Goldwind's Shenzhen shares climbed 1.5 percent to close at 21.33 yuan Friday, giving the company a market value of 48 billion yuan. The stock has gained 19 percent this year, while the Shenzhen Composite Index has declined 14 percent.
China, the world's largest coal consumer, invested $34.5 billion in low-carbon energy technologies in 2009 compared with $18.6 billion for the US, according to Bloomberg New Energy Finance. The government wants to install 150 gigawatts of wind power by 2020, compared with 25.5 gigawatts installed as of last year, New Energy Finance said in a May report.
Cheng is the chairman of New World Development Co, a real estate developer and construction company in Hong Kong, and his businesses include jewelry sales and department store operations in China.
Earlier reports said another tycoon in the city, Lee Shau-kee, Chairman of Henderson Land Development Co, will buy around $40 million worth of Goldwind shares during the IPO process.
Bloomberg News
(HK Edition 06/05/2010 page3)