New | China’s Hanergy terminates US$585 million deal with parent
Hanergy Thin Film Power, which is under investigation by the securities regulator, said on Monday in a regulatory filing that it has cancelled a US$585 million sale of equipment and services to its parent company Hanergy Holding.
The company announced the major sale of solar panel assembly lines and related services on May 4. Trading in Hanergy shares was suspended on May 20 when, in the first 70 minutes of trading, its share price fell 47 per cent to HK$3.91 from HK$7.37.
Before the freeze in trading, the shares had surged 664 per cent over the previous 12 months. The company’s market value had exceeded that of all its mainland competitors combined.
Much of the Hanergy’s business is conducted with its parent. The company said that the termination of the sale would not have a material impact on the group’s business.
Media reports have long cast doubts on the sustainability of the firm’s business model, with some suggesting its share trading was manipulated.
The Securities and Futures Commission confirmed late last month that it had launched a formal investigation into the affairs of Hanergy.
