LDK Solar: Anhui LDK agrees to sell unit interest for RMB 120 million

By Caroline Salls

Pittsburgh, April 16 - LDK Solar Co., Ltd. said Anhui LDK New Energy Co., Ltd. signed an agreement to sell and transfer all of its equity interest in wholly owned subsidiary LDK Solar High-Tech (Hefei) Co., Ltd. to an affiliate of the Hefei City, China, government for RMB 120 million, according to a news release.

The government affiliate is Hefei High Tech Industrial Development Social Service Corp.

Based on the company's book value, LDK Solar said it expects to realize a net loss in the range of $80 million to $90 million for this transaction.

LDK Solar said Shanghai Qianjiang Group failed to secure governmental approvals for a purchase agreement announced in January by the March 30 deadline.

"We appreciate the assistance and collaboration from Hefei Municipal Government," LDK Solar president and chief executive officer Xingxue Tong said in the release.

"We will do our best to assure a smooth closing of this transaction."

LDK Solar is a Xinyu City, China-based producer of solar wafers and photovoltaic products.

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