LDK Solar buys back ‘grossly undervalued’ shares
NYSE-listed LDK Solar has bought back USD110m of its American Depository Shares (ADSs) on the belief that the shares are 'grossly undervalued', according to NewNet.
The board of directors approved the buy-back program, and the shares have been repurchased through either the open market or through privately-held negotiations.
Xiaofeng Peng, chairman and CEO LDK Solar said, 'We remain confident in our current outlook as well as the long-term prospects for our business. However, we believe our ADSs are currently grossly undervalued.
'We believe our share buy-back program not only represents a good investment for our company, but also demonstrates our commitment to enhance shareholder value.'
In June, the solar product manufacturer sold a minority interest in its polysilicon business to a group of investors including the China Development Bank with an eye to the business making an initial public offering within two years.
China Development Bank invested USD240m in the business through its subsidiaries with investors buying 240 million Series A convertible preferred shares in LDK Silicon & Chemical Technology.