Comtec Solar Systems Group, a major Chinese maker of monocrystalline solar wafers, says TPG Capital will invest up to HK$1.17 billion in the firm.
TPG will subscribe for HK$780 million of unsecured convertible bonds due 2016. The bonds are convertible into new ordinary Comtec shares at an initial conversion price of HK$3.90.
TPG will also receive 95 million warrants with the right to subscribe for one ordinary share each, with an initial exercise price of HK$4.10 per warrant. The warrants have a maturity of five years. Comtec will raise HK$390 million if the warrants are all exercised.
If the bonds are fully converted and warrants fully exercised, TPG will hold 295 million ordinary shares, or 21 per cent of Comtec's total enlarged issued share capital.
Shanghai-based Comtec, which supplies wafers to solar cell and battery makers, said the proceeds would be used to expand its solar wafer production capacity.
The company expected wafer production to reach 1,400 megawatts this year, up from its previous forecast of 1,000 megawatts, Comtec chief executive John Zhang said.