Chinese solar company CNPV Solar Power SA (EPA: ALCNP) held a meeting on Monday to vote on a possible majority stake sell-off to an unnamed company controlled by a local city for $10 million.
CNPV manufactures photovoltaic components like panels, and it has cited a “severe liquidity problem.”
Under the deal, the purchasing company, controlled by the local government of Dongying city, would own 50.38 percent of CNPV. The board has endorsed this deal.
This isn’t the first such instance, as LDK Solar Co. (NYSE: LDK) agreed on October 22 to sell 19.9 percent of its shares to a renewables investor that’s partially owned by the Xinyu government.
There seems to be a rising trend of local governments taking a more active role in supporting Chinese PV companies that find themselves in difficulties owing to the current photovoltaic industry circumstances.
CNPV’s shares were suspended from trading in Paris back in February; at that time they were trading at 5.49 euros, or roughly $7.04, making the company worth around $57 million.