Xinyi Glass to spin off solar glass business
China-based Xinyi Glass Holdings Ltd announced its intention to spin off Xinyi Solar Holdings Ltd and list the business in the Hong Kong bourse. Xinyi Glass is a manufacturer of glass products for vehicles and appliances. Xinyi Solar Holdings, meanwhile, is its solar glass business.
In a statement given to the Hong Kong bourse, Xinyi Glass said it would retain 30% of its stake in Xinyi Solar. It would then distribute the other 70% to its shareholders. Xinyi had postponed its 2011 plan to sell its stake in Xinyi Solar because of the European debt crisis and the downfall of the global equity markets.
"The separate listing will provide Xinyi Solar with a separate platform to raise future funds from the capital markets to support its growth through continuing organic expansion as well as acquisitions," Xinyi Glass added. Products in Xinyi's solar glass unit comprised 13.8 % of the sale of Xinyi Glass Holdings last year.