flew skyward Tuesday after a major shareholder vaulted its stake in the China-based solar-power chipmaker to more than one-third.
Good Energies, a privately held firm that specializes in renewable-energy investments, agreed to buy about another 66.7 million shares and 281,000 American depositary shares from existing stockholders. Some of that stock will come from Chief Executive Yunghua Lu, who will sell half of his Solarfun interest, leaving him with a 16.1% ownership stake.
The transaction should close in the first quarter, when Energies' stake in Solarfun will surge to around 34.7% from the current 6.3% level. Another Energies representative, as well as a new independent director, will join Energies Investment Officer Sven Hansen on Solarfun's board. Hansen has served on the board since August 2006.
Richard Kauffman, CEO of Good Energies, said his firm is eager to help Solarfun "achieve its long-term vision," and views the company as "one of the best manufacturing platforms for
photovoltaic products in Asia" with "tremendous opportunities for growth."
Solarfun, for its part, hopes to leverage Energies' "expertise, resources, and track record of successful investments in the solar industry."
Solarfun shares rocketed $5.65, or 27.4%, to close at $26.25.